i    :)■■•■  om-: 


ON  THE 


POLICE  PENSION  FUND 


CITY  OF  NEW  YORK 
1913 


A   REPORT 


police  pension  Jfunb 


CITY  OF  NEW  YORK 


SUBMITTED    TO    THE 


ALDERMANIC    COMMITTEE 
ON  POLICE  INVESTIGATION 


Bureau  of  Municipal  Research 

u 

261  Broadway,  New  York 


^11 


133— '14— 1000 


CONTENTS. 

PART  I— DESCRIPTIVE  AND  INTERPRETATIVE  REPORT. 
CHAPTER  I.— INTRODUCTION. 

PACK 

Need  for  Actuarial  Appraisement  of  Fund 15 

Difficulties  of  Making  Appraisement 15 

Scattered  and  Incomplete  Records 15 

Administrative  Obstructions 16 

Volume  of  Work  Involved 16 

Summary  of  Fact-Conclusions  Reached 16 

1.  The  Police  Pension  Fund  Exists  as  a  Legal  Fiction  Only 16 

2.  Trustees  of  Fund  Have  Been  Negligent 16 

3.  Would  Require  Reserve  of  Over  $65,000,000 16 

4.  Future  Payments  to  Those  Now  on  Rolls  Nearly  $150,000,000 17 

5.  If  Present  Force  is  Kept  Up  Nearly  $375,000,000  Will  Be  Required  in  83 

Years 17 

6.  Annual  Fixed  Charge  to  City  Nearly  $5,000,000 17 

7.  Operates  as  Permanent  Reserve  or  Pledge  of  Nearly  $275,000,000  of  City's 

Taxables 18 

8.  When  Fully  Developed  Pension  Requirements  Will  Equal  One-third  of 

Payroll 18 

9.  Places  Police  Force  Among  Highest  Paid  Officers  on  Average 18 

10.  Present  Administration  of  Fund  Operates  Inequitably 18 

11.  Service  Pensions  Only  23  Per  Cent,  of  Whole 19 

12.  Obligation  of  Officials  to  Face  the  Situation  Squarely 19 

CHAPTER  II.— HISTORY  OF  THE  FUND. 

Origin  of  the  New  York  Police  Pension  Fund 22 

Brief  Statement  Showing  Changes  in  Law 22 

Increasing  Revenues  Provided 25 

Increase  in  Demands  for  Pension  Payments 26 

Inability  of  Fund  to  Meet  Obligations  Without  Resort  to  Taxation 26 

Beginning  of  Direct  Taxation 27 

Effect  of  Consolidation 28 

Direct  Taxes  Finally  Accepted  as  Principal  Source  of  Revenue 28 

Cause  of  Increase  in  Pension  Payments — Increase  in  Force 28 

Maturity  of  Obligations  of  Earlier  Years 29 

Taking  Over  of  Force  on  Consolidation 29 

Causes  Counteracting  Increases 29 

Causes  of  Conspicuous  Fluctuations 2£ 

CHAPTER  III— THE  LAST  TWELVE  YEARS  OF  PENSION  FUND 

EXPERIENCE. 

Increase  in  Percentage  of  Number  Retiring 33 

Detailed  Statistics  of  the  Growth  of  the  Fund,  1901-1912 31 

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Decreasing  Importance  of  Contributions  of  Force 32 

Increasing  Importance  of  Appropriations  from  Tax  Budget 33 

Increase  in  Percentage  of  Pensions  to  Payrolls 33 

Classification  of  Pensioners 33 

Distribution  of  Benefits 33 


CHAPTER  IV.— THE   FUND  AND  THE   MACHINERY  FOR  ITS 
ADMINISTRATION. 

Sources  of  Revenue 35 

Trustee  of  the  Fund 35 

Exercise  of  Discretion  in  Granting  Pensions 36 

Granting  Regular  or  Service  Pensions 36 

Granting  Disability  or  Invalid  Pensions 36 

Granting  Pensions  to  Widows,  Children,  and  Dependent  Parents 37 

Organization  Provided  for  Administration 37 

Duties  of  Officers  Connected  with  Fund 38 

Duties  Performed  by  the  Bookkeeper  of  the  Department 39 

Duties  of  the  Pension  Investigator 40 

Duties  of  Surgeons 40 

Composition  and  Duties  of  Pension  Board 41 

CHAPTER  V— HANDICAPS  TO   GOOD  ADMINISTRATION. 

Results  of  Defects  in'  Present  Laws 43 

Possibility  of  Drawing  Salary  and  Pension  at  the  Same  Time 43 

Increases  in  Pensions  After  Being  Placed  on  Roll 43 

Pensions  in  Excess  of  Regular  Pay 44 

Confusion  Due  to  Ambiguous  Provisions 44 

Inadequate  Provisions  for  Administering  the  Fund 45 

The  Head  of  the  Department  Not  a  Proper  Trustee  for  the  Fund 45 

Attempts  to  Cure  Last  Named  Defect 45 

An  Interested  Advisory  Board 46 

A  Partisan  Pension  Investigator 47 

Lack  of  Complete  and  Accurate  Pension  Records 47 

Need  for  Exact  Information  Ignored  by  Commissioner 47 

Estimate  of  Liabilities  Impossible  Without  Exact  Information 47 

Statements  in  Annual  Report  are  Misleading 48 

Inaccuracies  in  Such  Records  as  Are  Kept 49 

Inconsistencies  in  Data  Published 49 

Lack  of  Provision  for  Continuity  of  Policy 50 

Frequency  in  Change  of  Commissioners 50 

Differences  in  Interpretation  and  Application  of  Law 51 

Elements  of  Uncertainty  Undesirable 52 


CHAPTER  VI.— LIABILITIES  INCURRED  AND  THE  METHOD   OF 
MEETING  THEM. 

Elements  Involved  in  Appraisement 53 

Present  Condition  of  Fund  When  Appraised  on  Theory  of  "Reserve"  Plan 54 

Contributions  to  the  Fund  by  Prospective  Beneficiaries 55 

Net  Present  Liabilities 55 


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PAGE 

Future  Payments  to  Pensioners  and  Present  Force  on  "Cash  Disbursement"  Plan. .  55 

Payments  to  Future  Entrants 56 

Annual  Payments  Required  if  Present  Force  is  Maintained 56 

Probable  Increase  in  Annual  Demands 58 

The  Ultimate  Cost  of  Police  Service  to  the  City 58 


CHAPTER  VIL— DETAILED  ANALYSIS   OF  FUND  REQUIREMENTS. 

Payments  to  Be  Made  to  the  Present  Pensioners 61 

Amounts  to  Be  Paid  to  Each  Class 61 

Payments  to  Be  Made  to  the  Retiring  Members  of  the  Present  Active  Force  and 

Their  Dependents 62 

Amount  Required  Before  Last  Benefit  is  Paid 63 

Distribution  by  Classes  of  Beneficiaries 64 

Annual  Installments  Required  to  Meet  Matured  Obligations  to  Persons  Now  on  Rolls  64 

Increasing  Proportion  to  Be  Provided  by  City 64 

Annual  Pension  Payments  to  Be  Made  to  New  Entrants 64 

Total  Amounts  Required  by  Classes 65 

Small  Amount  Required  During  First  15  Years. 66 

Contributions  of  New  Entrants  Sufficient  for  27  Years 67 

Inability  to  Meet  Obligations  Thereafter  Except  by  Appropriations 67 


CHAPTER  VIIL— HOW  THE   PLAN  HAS  OPERATED  AS  A   MEANS 
OF  PROVIDING  SERVICE  PENSIONS. 

Relative  Importance  of  Service  Pension  Provisions  to  Other  Provisions 69 

Four  Kinds  of  "Service"  Pensions 69 

Pensions  Granted  for  Twenty-five  Years  of  Service  at  55  years  of  Age.  or  More.  70 

Rights  Accorded  as  a  Result  of  Military  Service 70 

Discretionary  Pension  Grants  for  Twenty  Years  of  Service 70 

Discretionary  Retirement  of  Members  Over  Sixty  Years  of  Age 70 

"Straight  Pension  Plan"  Adopted 70 

Service  Pensions  as  Deferred  Pay 71 

Wherein  the  Plan  Has  Been  Modified 71 

Question  as  to  Whether  the  Age  Limit  of  55  Is  Too  Low 72 

Inducement  to  Leave  the  Service 72 

Members  Leave  Service  to  Enter  Other  Employment 73 

Police  Pensioners  in  the  Employ  of  Other  City  Departments 74 

The  Present  Plan  Encourages  the  Retention  of  Incompetents 75 

Pensions  Based  on  Terminal  Salaries  Inequitable 75 

Location  of  Present  Pensioners 77 

Salaries  and  Pensions  of  Police  Surgeons 77 


CHAPTER  IX.— HOW  THE   PLAN  HAS  OPERATED   AS  A   MEANS   OF 
PROVIDING   DISABILITY  PENSIONS. 

Disability  Pension  Provisions 79 

Discussion  of  the  Provisions 79 

Retirements  for  Disability  Compared  with  Retirements  for  All  Other  Causes 80 

Disability  Payments  Greater  than  All  Others  Combined 80 

Physical  Condition  of  Members  of  Force  Allowed  to  Deteriorate  After  Entrance ....  81 


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Abnormal  Rates  of  Sickness  Reported  in  Department 82 

Surgical  Division  Characterized  as  Unsatisfactory  and  Inefficient 82 

Present  Pension  Administration  Responsible  for  Abnormally  Increased  Rate  of 

Disability  Retirements 83 

Law  Extremely  Loose  as  Regards  Disability  Retirements 84 

Dangerous  Results  of  Present  Law 84 

Words  "In  Performance  of  Duty"  Meaningless  Under  Present  Conditions 85 

Incieases  in  Number  of  Disability  Retirements 85 

Retirements  Under  the  Various  Disability  Provisions  of  the  Law 86 

Present  Physical  Examination  of  Applicants  for  Disability  Pensions  of  Questionable 

Value 86 

Representation  of  Associations  on  Pension  Board  Undesirable 87 

Beneficiaries  Themselves  Question  Present  Practice 89 

Retirement  of  Persons  Whose  Health  is  Not  Permanently  Impaired 89 

Discrimination  between  Applicants  of  Equal  Merit 89 

Incompetence  or  Lack  of  Good  Faith  in  Certifications  of  Persons  for  Disability 

Pensions 89 

The  Case  of  Sergeant  James  F.  Vallely 90 

The  Case  of  Patrolman  James  E.  Wrenn 90 

Statistics  of  Retirement  Indicate  That  Not  All  Disability  Pensions  are  Bona  Fide  .  .  91 

Many  of  Present  Disability  Pensioners  Enjoy  Average  Good  Health 92 

Disability  Pensioners  Employed  in  Other  City  Departments 93 

No  Check  on  Propriety  of  Disability  Retirements 93 

Abnormal  Rate  of  Disability  Retirements 94 

Data  Necessary  for  Estimating  Cost  of  Disability  Pensions 94 

Relative  Cost  of  Officer's  as  Compared  with  Patrolman's  Disability  Pensions 95 

Cost  of  Disability  Pensions  as  Compared  with  Cost  of  Service  Pensions 97 


CHAPTER  X.— HOW  THE  PLAN  HAS  OPERATED  AS  A  MEANS  OF  PROVIDING 
PENSIONS  TO  DEPENDENTS  OF  POLICEMEN. 

Nature  of  Problem  Involved  in  Pensioning  Dependents 99 

Pensions  to  Dependents  Must  be  Added  to  Cost  of  Service  and  Disability  Retirements.  100 

Pensions  to  Dependents  Cost  More  Than  Service  Pensions 100 

Cost  of  Pensions  to  Dependents  Per  Each  $100  Paid  to  Active  Members 101 

While  Total  Expenditures  Are  Large,  the  Present  Plan  Does  Not  Provide  Against 

Want 101 

Benefits  Not  Distributed  Equitably  or  According  to  Needs 101 

Lack  of  Provision  for  Relief  in  Case  of  Policeman's  Death  after  Less  Than  Ten  Years 

in  Active  Service 102 

A  Question  Raised  with  Respect  to  Benefits  to  Widows  of  Disability  Pensioners 102 

Insecurity  of  Pension  Income  Due  to  Absolute  Discretionary  Powers  of  Commissioner.  102 

Changes  in  Administration  Prevent  Uniform  Treatment 104 

Discretionary  Powers  Especially  Undesirable  When  Pension  is  Granted  to  Widow  of 

Pensioner  Disabled  in  Performance  of  Duty 104 

The  Principle  of  Having  Facts  Determined  by  a  Patrolman  Investigator  is  Wrong. . .  104 
Chances  for  Prejudiced  Interpretation  of  Law  Because  of  Personal  Relations  of 

Beneficiaries  to  Officials  of  Pension  Board 105 

Pension  of  One  Widow  Revoked  for  a  Given  Reason 105 

Pension  of  Another  Widow  Under  Same  Conditions  Increased 105 

The  Same  Pension  Case  Treated  in  Three  Different  Ways  by  as  Many  Police  Com- 
missioners    106 

Necessity  for  Fixed  Rules  and  Unbiased  Interpretation  of  Law 107 


LIST  OF  CHARTS  IN  DESCRIPTIVE  AND  INTERPRETATIVE  REPORT. 

PAGE 

Chart  I.        Showing  the  annual  pension  payments  and  revenues  of  the  police  pension 

fund  from  1857  to  1912 27 

Chart  II.  Showing  the  proportion  of  various  sources  of  receipts  of  the  police  pen- 
sion fund  from  1901  to  1912 32 

Chart  III.     Showing  the  comparative  growth  of  the  active  force  and  the  various 

classes  of  pensioners  from  1901  to  1912 34 

Chart  IV.      Classification  of  pensions 38 

Chart  V.  Showing  the  annual  pension  expenditures  of  the  City  of  New  York  dur- 
ing the  next  83  years  for  police  pensions  under  plan  now  in  use  at  pres- 
ent salaries  and  without  increase  in  force 57 

Chart  VI.  Showing  the  annual  pension  payments  during  the  next  67  years  to  the 
various  classes  of  pensioners  who  were  on  the  pension  roll  of  the  New 
York  police  pension  fund  on  February  1,  1913 62 

Chart  VII.  Showing  the  annual  pension  payments  during  the  next  83  years  to  the 
various  classes  of  pensioners  to  be  retired  from  the  present  active  police 
force  of  the  City  of  New  York 63 

Chart  VIII.  Showing  the  annual  amounts  which  will  be  contributed  by  the  City  and 
by  the  members  of  the  police  force  during  the  next  83  years  for  the 
payment  of  maturing  pension  obligations  to  the  present  pensioners 
and  for  future  pensions  to  the  present  active  force 65 

Chart  IX.  Showing  the  annual  pension  payments  during  the  next  83  years  to  the 
various  classes  of  pensioners  to  be  retired  from  the  future  entrants  into 
the  police  force  of  the  City  of  New  York 66 

Chart  X.  Showing  the  annual  amounts  which  will  be  contributed  by  the  City  and  by 
the  employees  during  the  next  83  years  for  the  payment  of  maturing 
obligations  to  future  entrants  into  the  police  force  of  the  City  of  New 
York 67 


APPENDIX  TO  PART  I. 


Table  I.  Showing  changes  in  police  pension  rates,  1860  to  1907 110 

Table  II.  Showing  changes  in  salaries  of  the  uniformed  force  of  the  police  depart- 
ment, 1857  to  1912 112 

Table  III.  Showing  the  annual  pension  payments  and  revenues  of  the  police  pen- 
sion fund  from  1857  to  1912 114 

Table  IV.  Showing  the  total  number  of  pensions  granted  since  the  foundation  of 
the  fund  in  1857,  the  number  and  per  cent,  of  the  same  which  since 
terminated  and  the  number  and  per  cent,  remaining  active  in 
February,  1913 115 

Table  V.  Detailed  statement  of  annual  receipts  of  the  police  pension  fund  for 

the  years  1901  to  1912 116 

Table  VI.         Analysis  of  annual  net  receipts  of  the  police  pension  fund  for  the  years 

1901  to  1912 117 

Table  VII.  Comparative  statement  by  years,  showing  the  relation  of  the  number 
of  pensioners  to  the  active  members  of  the  force  and  of  the  pensions 
paid  to  the  active  payroll,  1901  to  1912 118 

Table  VIII.      Showing  the  number  of  members  on  the  pension  roll  in  February,  1913, 

drawing  each  specified  amount  of  pension 119 

Table  IX.  Showing  the  number  of  widows,  children  and  dependent  parents  on 
the  pension  roll  in  February,  1913,  drawing  each  specified  amount 
of  pension 119 


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PAGE 

Table  X.  Comparative  strength  of  the  uniformed  police  force  in  its  several 

grades  at  the  close  of  each  specified  year,  1901  to  1912 120 

Table  XI.         List  of  ten  pensioners  who  are  at  present  on  the  pension  roll  of  the  New 

York  Police  Department  and  have  drawn  $321,363  in  pensions 122 

Table  XII.  Activities  of  the  various  police  administrations  from  1857  to  1913,  as 
expressed  by  the  number  of  pensions  granted,  terminated  or 
amended 124 

Table  XIII.      Total  number  of  pensions  on  the  roll  from  1857  to  1913  and  proportion 

of  amended  pensions  to  those  which  were  not  amended 126 

Table  XIV.      Showing  ten  retired  policemen  who  draw  pensions  and  also  salaries  in 

other  City  departments 128 

Table  XV.  Showing  the  "expectation  of  life"  of  regular  pensioners  and  of  disa- 
bility pensioners  (monthly  payments)  of  the  New  York  City  police 
pension  fund 130 

Table  XVI.      Showing  the  total  annual  cost  (salary  and  pension)  of  the  services  of 

five  members  of  the  force  retired  on  service  pensions 132 

Table  XVII.    Showing  the  total  annual  cost  (salary  and  pension)  of  the  services  of 

52  members  of  the  force  retired  for  disability 134 

Minutes  of  the  Pension  Board  of  the  Police  Department  of  the  City 

of  New  York 136 

Pension  Record  of  Lieutenant  James  F.  Vallely 141 


PART  II.— ACTUARIAL  REPORT. 


TEXT. 

The  Benefits 149 

Employees 149 

Employees'  Families 149 

The  Data 150 

Collecting 150 

Checking 151 

Punching 153 

The  Tabulation 153 

General 153 

The  Salary  Scale 154 

Exposure  and  Check  Tables 155 

The  Graduation 165 

Rates  and  Comparisons 165 

Active  Service 165 

Pensioners 169 

Regular  or  Service  Pensioners 169 

Disability  or  Invalid  Pensioners 169 

Widow  Pensioners 170 

Children  Pensioners 173 

Combined  Active  Members  and  Pensioners 173 

Service  and  Mortality  Tables 173 

Family  History 180 

Reasons  for  Calculating  the  Cost  by  Years  and  the  Amount  of  Continuing  Liability, 

as  Well  as  Making  an  Ordinary  Valuation 181 

The  Yearly  Distribution  of  Cost 181 

The  Valuation 182 

The  Continuing  Liabilities 182 


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PAGE 

Adjustments 182 

The  Present  Active  and  Pension  Services 182 

Pension  Allowances 188 

Yearly  Cost  to  City  of  Pension  Payments  to  Present  Active  and  Pension  Forces ....  188 

Yearly  Cost  of  Continuing  Liability 197 

Total  Yearly  Cost  of  Pensions 204 

Average  Amount  of  Salary  and  Pension  Received  by  an  Employee 205 

The  Valuation  of  Total  Assets  and  Liabilities 208 


LIST  OF  TABLES  AND   CHARTS  IN  ACTUARIAL  REPORT. 

Actual  Experience  Tables: 

Table  1. — Active  Service 153 

Table  2. — Regular  Pensioners 153 

Table  3. — Disability  Pensioners 154 

Table  4. — Widow  Pensioners 154 

Diagrams  of  Adjusted  and  Unadjusted  Rates: 

Active  Service 155 

Regular  Pensioners 160 

Disability  Pensioners 161 

Widow  Pensioners 162 

Salary  Scale 164 

Rates  and  Comparisons: 

Table  5. — Rate  of  Withdrawal  from  Active  Service 165 

Table  6. — Rate  of  Accidental  Death  in  Actual  Performance  of  Duty 166 

Table  7.— Rate  of  Mortality  While  in  Active  Service 167 

Table  8.— Rate  of  Invalidity 168 

Table  9. — Rate  of  Regular  or  Service  Retirement 168 

Table  10. — Rate  of  Mortality  Among  Regular  or  Service  Pensioners 169 

Table  11. — Rate  of  Mortality  Among  Disability  or  Invalid  Pensioners 170 

Table  12. — Rate  of  Mortality  and  Withdrawal  Among  Widow  Pensioners 171 

Table  13. — Rate  of  Mortality  in  Active  Force  Modified  to  Include  Regular  and 

Disability  Pensioners'  Lives 172 

Service  and  Mortality  Tables: 

Table  14. — Active  Service  Table  and  Salary  Scale 175 

Table  15. — Regular  Pensioners'  Mortality  Table 176 

Table  16. — Invalid  Pensioners'  Mortality  Table 177 

Table  17. — Widow  Pensioners'  Mortality  and  Withdrawal  Table 178 

Table  18.— Children  Pensioners'  Mortality  Table 179 

Table  19. — Combined  Mortality  Table  or  Active  Service  Mortality  Table  Modi- 
fied to  Include  Regular  and  Disability  Pensioners'  Lives 179 

Family  History: 

Table  20. — Showing  the  Conjugal  Relation  of  Employees,  the  Corresponding 
Age  of  the  Wife  to  That  of  the  Husband  Dying  and  the  Number  of  Employees 

Who  Leave  Children,  Together  with  the  Average  Age  of  the  Youngest  Child . .  180 

The  Present  Active  and  Pension  Services: 

Table  21. — Showing  by  Age  the  Number  and  Salary  of  All  Employees  of  the  New 

York  City  Police  Force 183 

Table  22. — Showing  by  Length  of  Service  the  Number  and  Salary  of  All  Em- 
ployees of  the  New  York  City  Police  Force 184 


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PAGE 

Table  23. — Showing  by  Age  the  Number  and  Pensions  of  All  Pensioners  of  the 

New  York  City  Police  Force  Who  Were  Retired  on  Regular  or  Service  Pensions.  184 
Table  24. — Showing  by  Age  the  Number  and  Pensions  of  All  Pensioners  of  the 

New  York  City  Police  Force,  Who  Were  Retired  Because  of  Disability 185 

Table  25. — Showing  by  Age  the  Number  and  Pension  of  All  Widows  on  the  Roll 

of  the  New  York  City  Police  Pension  Fund 186 

Table  26. — Showing  by  Age  the  Number  and  Pension  of  All  Children  on  the  Roll 

of  the  New  York  City  Police  Pension  Fund 186 

Table  27. — Showing  by  Age  the  Number  of  Persons  on  the  New  York  City  Police 

Force  and  Pension  Fund 187 

Yearly  Cost  to  City  of  Pension  System: 

Table  28. — Showing  the  Aggregate  and  Detailed  Annual  Cost  of  Pensions  to  the 
Present  Active  Force  and  Pension  Members  of  the  New  York  City  Police  Pen- 
sion Fund  Together  with  the  Amount  of  the  Employees'  Contribution  from 
the  Present  Active  Force 190 

Table  29. — Showing  the  Annual  Amounts  of  Pension  and  Salary  Payments  to  Be 
Made  to  the  Present  Active  and  Pension  Service  Rolls  of  the  New  York  City 
Police  Force 194 

Table  30. — Showing  the  Annual  Amounts  of  Pension  and  Salary  Payments  to  be 
Made  to  636  Persons  Entering  Each  Year  Into  the  Service  of  the  New  York 
City  Police  Force  on  an  Entrance  Salary  of  $800  at  an  Average  Entrance  Age 
of  25  Years 200 

Table  31. — Showing  the  Combined  Annual  Payments  of  Salary  and  Pensions  to 
be  Made  to  the  Present  Active  and  Pension  Forces  and  to  the  Probable  Future 
Entrants  Into  the  Service  of  the  New  York  City  Police  Force 203 

Average  Amount  of  Salary  and  Pension  Received  by  an  Employee: 

Table  32. — Showing  the  Annual  Amounts  of  Pensions  and  Salary  Payments  to 
be  Made  to  1,000  Employees  Entering  the  Service  at  the  Age  of  25  on  an  En- 
trance Salary  of  $800  per  Annum 206 

Table  33. — Showing  the  Annual  Amounts  of  Pension  and  Salary  Payments  to  be 
Made  to  One  Employee  Entering  the  Service  of  the  New  York  City  Police 

Force  at  the  Age  of  25  on  an  Entrance  Salary  of  $800  per  Annum 208 

Table  34. — Showing  Average  Pension  Salary  and  Active  Service  of  an  Employee 
Entering  Service  at  the  Age  of  25 210 

The  Valuation  of  Total  Assets  and  Liabilities: 

Table  35. — Showing  the  Valuation  of  the  New  York  City  Police  Pension  Fund 

as  of  February  1,  1913 211 


Telephone  5860  Barclay 

BUREAU  OF  MUNICIPAL  RESEARCH 

TRUSTEES 

Albert  Shaw,  Chairman 

R.  Fulton  Cutting,  Treasurer  DIRECTORS 

Joseph  W.  Hahriman 

George  B.  Hopkins  William  H.  Allen 

Bradley  Martin,  Jr.  Henry  Bruere 

Victor  Morawetz  Frederick  A.  Cleveland 

John  B.  Pine 

Frank  L.  Polk 

Edwin  R.  A.  Seligman 

Frank  Tucker 

261  Broadway,  New  York,  December  22,  1913. 

Hon.  Henry  H.  Curran, 

Chairman,  The  Aldermanie  Committee 
on  Police  Investigation. 

Dear  Sir: — As  requested  we  are  submitting  for  your  information  a 
descriptive  and  critical  report  on  the  Police  Pension  Fund  of  the  City  of 
New  York.  As  is  stated  in  the  introduction,  the  conditions  under  which 
the  inquiry  has  been  conducted  were  such  as  to  leave  no  time  for  the  prepa- 
ration and  consideration  of  constructive  recommendations.  The  value  of; 
the  report,  therefore,  lies  in  the  scientific  conclusions  reached  that  may 
serve  as  a  basis  for  intelligent  consideration  of  the  fund  in  the  future  and 
the  consideration  of  pension  plans  for  employees  in  other  branches  of  the 
service. 

Following  the  collection  of  data,  the  actuarial  report  (Part  II)  was 
prepared  for  the  Bureau  by  Mr.  George  B.  Buck.  From  the  conclusions 
thus  reached,  and  the  other  data  collected,  a  first  draft  of  the  interpretative 
report  (Part  I)  was  written  by  Mr.  Kobert  von  Eeutlinger,  who  was  iu 
charge  under  the  supervision  of  the  directors  of  the  Bureau  throughout  the 
inquiry. 

In  the  completion  of  the  final  draft  a  number  of  persons  have  co- 
operated, of  whom  special  mention  is  made  of  Mr.  "William  A.  Hutcheson, 
Mr.  John  A.  Tatlock  and  Mr.  John  S.  Thompson,  who  read  the  report  for 
actuarial  criticisms  and  suggestions;  of  Mr.  William  J.  Curtis,  who  read 
the  text  with  a  view  to  calling  attention  to  anything  of  a  legal  character 
to  be  corrected  or  restated  before  issue;  and  of  Mr.  Clyde  Furst,  Mr. 
Monell  Sayre  and  Mr.  Lewis  Meriam,  who  have  given  to  the  Bureau  the 
benefit  of  editorial  criticisms  and  suggestions.  Special  mention  is  also 
made  of  the  Bureau  of  Social  Hygiene,  of  which  Mr.  John  D.  Rockefeller, 
Jr.,  is  Chairman,  which  provided  the  funds  for  meeting  the  cost  of  collect- 
ing the  facts  and  of  the  making  the  actuarial  appraisement. 

Sincerely, 
(Signed)        .    F.  A.  Cleveland,  Director. 


PART  I 

DESCRIPTIVE  AND  INTERPRETATIVE 

REPORT 

PREPARED      BY      THE 

BUREAU  OF  MUNICIPAL  RESEARCH 

As  of  March  31,  1913 


CHAPTER   I 

Introduction 

The  present  study  of  the  operation  of  the  police  pension  fund  began 
on  January  2,  1913,  and  has  continued  to  this  time.  Other  examinations 
had  been  made  of  certain  legal  and  other  phases,  as  those  recently  con- 
ducted : 

1.  By  the  pension  committee  of  the  Citizens'  Union  of  the  City  of 

New  York  (January,  1911). 

2.  By  the  commissioner  of  accounts,  Eaymond  B.  Fosdick    (April, 

1911  and  May,  1912). 

Need  for  Actuarial  Appraisement  op  Fund 

One  of  the  results  of  previous  examinations  had  been  to  point  to  the 
need  for  a  careful  appraisement  of  the  fund's  resources  and  obligations 
with  a  view  to  determining  its  present  condition,  its  future  liabilities,  the 
provisions  made  for  meeting  them,  and  the  extent  to  which  the  present 
police  pension  plan,  if  continued,  will  become  a  burden  on  the  city.  It 
was  also  evident  that  the  subject  of  the  fund's  administration  should  be 
investigated. 

Difficulties  of  Making  Appraisement 

To  make  an  appraisement  it  was  necessary  to  provide  a  basis  for 
actuarial  computations.  To  this  end  a  form  of  individual  record  card, 
adapted  to  use  on  the  Hollerith  machine  (see  page  152,  actuarial  report), 
was  devised,  on  which  were  shown  all  the  facts  needed  for  tabulation  pur- 
poses. On  one  end  of  the  card  the  data  essential  to  the  computation  were 
taken  from  various  records  in  the  department,  and  supplemented  in  some 
cases  by  personal  inquiry.  When  the  cards — 20,000  in  number — were 
completed,  each  member  of  the  force  who  was  drawing  a  salary  and  each 
pensioner  during  the  six-year  period,  1907  to  1912,  was  included. 

Scattered  and  Incomplete  Records 

Some  of  the  difficulties  encountered  in  preparing  these  cards  may  be 
understood  when  it  is  known  that  the  record  data  were  scattered  through- 
out the  department  in  the  following  manner: 

In  the  bookkeeper's  office  were  kept  a  card  roster  of  pensioners  con- 
taining incomplete  data  concerning  early  retirements  and  a  dis- 
continued book  record  containing  the  same  incomplete  information 
in  very  inconvenient  form. 

In  the  chief  clerk's  office  two  card  systems  and  an  obsolete  and  incon- 
veniently arranged  set  of  book  records  were  found. 

In  the  filing  bureau  the  personal  folders  containing  certain  essential 
data  for  pensioners  were  not  kept  separate,  but  were  mixed  in  the 
general  files,  part  of  which  were  kept  at  the  old  police  headquarters 
on  Mulberry  street. 

15 


16 

Administrative  Obstructions 

In  addition  to  the  confusion  of  record  data,  the  task  was  made  more 
difficult  on  account  of  lack  of  cooperation.  Complete  cooperation  was  prom- 
ised by  the  police  commissioner  at  the  beginning  of  the  study,  and  it  was 
understood  that  there  would  be  accorded  unrestricted  access  to  all  files. 
After  the  work  was  under  way,  numerous  difficulties  were  encountered,  and 
limitations  were  placed  upon  the  staff  and  assistants  by  the  police  com- 
missioner. Originally,  promise  was  made  to  supply  the  ages  of  present 
and  prospective  women  pensioners,  which  were  in  some  instances  missing 
from  the  records.  This  promise  was  later  withdrawn  on  the  ground  that 
it  was  improper  to  ask  such  personal  questions  of  women. 

Volume  op  Work  Involved 

These  adverse  conditions  have  a  special  significance  when  considered 
in  relation  to  the  time  limitations  placed  on  the  inquiry.  First,  20,000  per- 
sonal record  cards  must  be  prepared  from  poorly  adapted  and  widely  scat- 
tered records;  then  the  record  data  had  to  be  supplemented  by  personal 
inquiry.  The  difficulties  in  obtaining  the  essential  information  were  so 
great  that  the  tabulating  could  not  be  begun  till  last  August.  Even  had  all 
of  these  physical  and  personal  handicaps  been  removed,  the  appraisement 
from  an  actuarial  standpoint  would  have  presented  great  difficulties  on  ac- 
count of  the  lack  of  experience  tables  needed  to  lay  a  broad  foundation  for 
the  appraisement  of  a  fund  of  this  kind.  The  work  of  appraisement  of 
liabilities  under  the  present  police  pension  plan  combines  elements  and 
probabilities  that  have  never  been  reduced  to  a  scientific  basis.  In  fact, 
this  combination  of  probabilities  had  never  before  been  made  the  subject 
of  an  actuarial  estimate.  The  conclusions  of  this  report,  therefore,  are  the 
results  of  a  new  application  of  actuarial  science  to  the  problem  of  pension 
administration. 

Summary  of  Fact-Conclusions  Reached 

In  summary  form  the  fact-conclusions  reached  are  as  follows : 

1.  The  police  pension  fund  exists  as  a  legal  fiction  only:    Since  1904 

the  annual  deficiencies  of  the  fund  have  rapidly  increased  until 
the  deficiency  in  1912  amounted  to  $1,135,188.22  or  54.1%  of 
the  total  amount  needed  for  the  payment  of  pensions  during  that 
year.  There  are  no  assets  held  in  reserve  to  provide  for  the 
payment  of  accrued  liabilities. 

2.  Trustees  of  fund  have  been  negligent:    The  officers  who  are  re- 

sponsible as  legal  trustees  of  the  fund  have  not  even  taken  the 
steps  to  keep  the  records  and  collect  the  data  needed  to  find  out 
what  are  the  prospective  obligations  to  be  met  or  whether  there 
will  be  assets  sufficient  to  meet  them,  and  they  do  not  now  know 
and  never  have  known  the  amount  of  the  present  or  accruing 
liabilities. 

3.  Would  require  reserve  of  over  $65,000,000:    If  no  additions  are 

made  to  the  present  active  police  force — vacancies  caused  by  re- 
tirements or  death  not  being  filled — the  trustees  should  now 
have  resources  in  reserve  amounting  to  $65,257,367,  which,  in- 
vested at  4%  compound  interest,  would  be  sufficient,  together 
with  the  funds  in  hand  ($97,455)  and  future  contributions  of 
the  present  force,  to  pay  pensions  as  they  mature  each  year. 


17 

Future  payments  to  those  now  on  rolls  nearly  $150,000,000:  The 
amount  of  pensions  which  will  be  payable  in  the  future  is  shown 
in  the  following  statement.  In  ascertaining  these  figures  it  was 
assumed  that  certain  proportions  of  the  active  force  would 
die  and  certain  other  proportions  would  be  retired  each  year 
and  that  certain  proportions  of  those  retiring  each  year  would 
die  each  year. 

Pension  payments  to  present  pensioners. . .     $28,492,083 
Pension  payments  to  present  active  force 
upon  retirement 120,511,528 

Total  pension  payments  to  those  now  on 
roll $149,003,611 

Toward  meeting  this  amount  the  present  force  will  con- 
tribute (2%  of  salaries) 4,414,556 

Leaving  the  amount  to  be  contributed  by  City $144,589,055 

If  present  force  is  kept  up  nearly  $375,000,000  will  be  required 
in  83  years:  If  the  present  quota  of  men  on  the  force  were  to 
be  kept  up,  the  total  expenditures  of  the  city  for  police  pensions 
during  the  next  83  years  (the  time  required  to  liquidate  obliga- 
tions to  those  now  on  rolls)  would  be  as  follows: 

Total  pension  payments  to  those  now  on 

rolls $149,003,611 

Total  future  pension  payments  which  must 

be  made  during  the  period  of  pension 

payments  to  persons  now  on  roll  in  order 

to  keep  up  the  force  to  present  quota  of 

men  without  increase  in  salaries 225,814,962 

Total  expenditures  of  City  for  police  pen- 
sions to  be  met  within  the  next  83  years 
under  plan  now  in  use  at  present  salaries 

and  without  increase  in  force $374,818,573 

Toward  meeting  this  amount  beneficiaries 
will  contribute  as  follows: 

Present  force  (2%  of  salaries) 4,414,556 

New  entrants  (2%  of  salaries) 20,551,848      24,966,404 

Leaving  the  amount  to  be  contributed  by 
the  City  which  would  require  contribu- 
tions to  be  made  each  year  sufficient  to 
meet  the  deficiencies $349,852,169 

Annual  fixed  charge  to  city  nearly  $5,000,000:  Since  no  provision 
is  made  for  holding  in  reserve  an  amount  which,  if  put  at  in- 
terest, would  provide  the  means  for  meeting  liabilities  when  due, 
.  the  obligations  incurred  operate  in  the  same  manner  as  a  debt 
of  $374,818,573  without  interest,  payable  in  annual  installments 
during  the  next  83  years,  the  amount  of  installment  being  equal 
to  the  matured  pension  payments  to  pensioners  each  year,  less 
the  amount  contributed  by  the  policemen  themselves.  These  in- 
stallments are  not  in  the  nature  of  a  current  expense  since  they 
are  for  services  rendered  in  past  years.  They  are  a  fixed  charge, 
like  interest  and  sinking  fund  instalments.  When  pension  pay- 
ments are  not  made  out  of  a  cumulated  reserve  fund,  the  city's 


18 

annual  contributions  are  in  the  nature  of  payments  on  a  deficit 
incurred  in  past  years.  As  soon  as  the  present  pension  plan  has 
reached  the  point  of  normal  operation,  without  any  increase  in 
force  or  salaries,  the  amount  of  the  annual  fixed  charge  will  be 
$4,970,866. 

7.  Operates  as  permanent  reserve  or  pledge  of  nearly  $275,000,000 

of  city's  taxables:  The  result  of  the  operation  of  the  present 
law  and  methods  of  meeting  obligations  under  the  police  pen- 
sion plan  is  the  same  as  if  the  city  set  aside  or  permanently  en- 
cumbered $273,124,505  of  the  city's  taxables,  assuming  that  the 
present  rate  of  $1.82  per  hundred  be  continued. 

8.  When  fully  developed,  pension  requirements  will  equal  one-third 

of  payroll:  Since  the  obligations  are  not  funded  (i.  e.,  since 
each  year  and  generation  an  amount  is  not  set  aside,  which  if 
put  at  interest  would  meet  the  police  pension  obligation  pro 
rata)  the  result  will  be  that  within  the  next  generation  more 
than  $33  will  be  required  on  the  average  to  meet  maturing  pen- 
sion obligations  for  every  $100  paid  in  salaries  to  policemen  on 
the  active  roll.  Of  this,  only  $2  will  be  contributed  by  police- 
men, while  the  balance,  or  more  than  $31,  must  be  provided  by 
the  city  as  a  charge  against  its  revenues.  The  requirements  of 
the  present  plan  are  in  effect  the  same  as  if  the  city  had  prom- 
ised to  pay  $33.44  for  each  $100  of  payroll  obligations,  and 
then  made  no  provision  in  the  annual  budgets  for  meeting  the 
$33.44  except  in  so  far  as  pension  claims  matured  during  each 
year. 

9.  Places  police  force  among  highest  paid  officers  on  average:    Leav- 

ing out  the  question  as  to  which  particular  administrations  in 
the  future  will  have  to  pay  the  pensions,  the  average  cost  to  the 
city  of  the  services  of  the  police  force  in  its  several  grades  is  as 
follows : 


Rank 


Salary, 
100% 


Pension  Paid 
by  City, 
31.44% 


Total 

Average  Cost 

to  City 

per  Year 


Matron 

Patrolman 

Sergeant 

Lieutenant 

Captain 

Surgeon  (Inspector) 


$1,000 
1,400 
1,750 
2,250 
2,750 
3,500 


$314.40 
440.16 
550.20 
707.40 
864.60 

1,100.40 


$1,314.40 
1,840.16 
2,300.20 
2,957.40 
3,614.60 
4,600.40 


10.  Present  administration  of  fund  operates  inequitably:  This,  how- 
ever, does  not  mean  that  each  and  every  member  of  the  force 
actually  receives  benefits  amounting  to  31.44%  of  his  aggregate 
salary.  It  is  one  of  the  most  unsatisfactory  features  of  the  plan 
that,  while  some  of  the  members  get  only  a  small  proportion  of 
the  pension  benefits  ,or  none  at  all,  losing  in  addition  their  2% 
contributions,  others  receive  their  full  share  and  not  infre- 
quently draw  more  in  pensions  than  in  salaries. 


19 

11.  Service  pensions  only  23%  of  whole.     Of  the  total  pension  pay- 

ments to  the  present  pensioners  and  to  the  present  active  force, 
23%  will  be  paid  for  service  pensions,  26%  to  widows,  children, 
and  dependent  parents,  and  51%  to  disability  pensioners  as 
follows : 

Expenditures  for  service  pensions $34,904,611  =  23% 

Expenditures  for  pensions  to  widows,  children 

and  dependent  parents 38,072,080  =26% 

Expenditures  for  disability  pensions 76,026,920  =51% 

Total  pension  payments  to  those  now  on  rolls. . .  $149,003,611  =  100% 

12.  Obligation  of  officials  to  face  the  situation  squarely:    Having  in 

mind  the  welfare  purpose  of  the  fund  and  the  obligations  which 
the  city  has  undertaken,  it  is  obvious  that  there  are  a  number 
of  important  questions  which  executive  officers,  as  well  as  the 
board  of  estimate  and  apportionment  and  other  legislative  offi- 
cers, must  consider.  These  questions  relate  to  three  subjects, 
viz.: 

a.  Laws  creating  and  controlling  the  operation  of  the  police 

pension  fund. 

b.  Use  of  official  discretion  in  its  administration. 

c.  Plan  adopted  to  finance  its  requirements. 

To  none  of  these  subjects  has  proper  consideration  been  given. 
In  fact,  the  present  aldermanic  inquiry  is  the  first  attempt  to 
face  the  situation  squarely. 

As  the  date  on  which  this  report  must  be  submitted  makes  it  impossible 
to  formulate  constructive  recommendations,  these  have  been  reserved  for 
later  presentation. 


CHAPTER    II 
History  op  the  Fund 

The  adoption  of  plans  for  pensioning  superannuated  employees  in  pub- 
lic as  well  as  private  service  dates  back  more  than  a  century.  This  is  one 
of  the  products  of  the  new  social  philosophy.  It  has  since  become  a  subject 
of  increasing  social  concern.  In  foreign  countries,  where  the  executive 
branch  of  government  has  assumed  responsibility  for  leadership  and  where 
reliance  has  been  placed  in  a  more  expert  personnel  of  administration,  the 
principle  of  retirement,  embodied  in  some  sort  of  a  provision  for  old  age, 
has  been  quite  general  in  its  application. 

Here  we  have  been  guided  by  the  doctrine  of  "laisser  faire. "  We 
have  not  taken  the  duties  and  responsibilities  of  government  seriously. 
Official  position  has  been  a  reward  of  partisanship.  Anyone  who  had  the 
cunning  to  get  a  "job"  was  thought  to  be  competent  to  perform  public 
service.  With  lack  of  executive  leadership,  and  lack  of  appreciation  of 
the  services  rendered  by  those  in  subordinate  administrative  positions,  the 
civil  service  has  been  both  the  mark  and  the  victim  of  legislative  jealousy 
of  executive  power.  In  addition,  the  fact  that  our  enormous  war  pen- 
sions have  been  used  as  a  bid  for  party  favor  has  stood  in  the  way  of  at- 
tempts to  gain  support  for  retirement  allowances  to  civil  servants. 

The  need  for  pensioning  municipal  employees  has  been  recognized  in 
few  cities  except  as  applied  to  school  teachers,  firemen,  and  policemen.  Ef- 
forts to  introduce  retirement  schemes  for  the  benefit  of  other  employees 
have  been  spasmodic  and  with  few  exceptions  to  little  purpose.  But  with 
the  more  recent  demand  for  efficiency,  both  private  and  public  corporations 
have  come  to  consider  seriously  the  welfare  of  the  employee,  and  growing 
out  of  such  consideration  there  has  been  more  frequent  and  more  adequate 
provision  made  for  his  old  age.  The  recent  demand  for  pensions  and 
group  compensation  for  disability,  including  old  age,  has  been  a  result  of 
the  popular  awakening  that  has  come  with  the  realization  that  it  is  only 
through  government  enterprise  that  individual  welfare  can  be  adequately 
safeguarded.  With  this  conclusion  accepted  as  a  premise  for  political 
thinking,  the  civil  servant  has  come  to  be  regarded  as  quite  as  important  a 
factor  in  the  community  and  national  life  as  the  soldier. 

A  recently  published  survey  of  pension  funds  for  municipal  employees 
in  the  United  States1  gives  an  outline  of  81  policemen's  funds  in  cities 
having  25,000  inhabitants  or  more.  An  examination  of  the  data  presented 
in  this  publication  indicates  that  the  majority  of  these  funds  have  been 
erected  and  conducted  on  an  unscientific  and  improper  basis.  Because  of 
the  short  period  they  have  been  in  operation  and  in  the  absence  of  actuarial 
estimates,  their  many  financial  and  other  serious  defects  have  not  become 
apparent. 

The  New  York  police  pension  fund  is  the  oldest,  having  been  estab- 
lished 56  years ;  it  has  had  a  long  experience  which,  when  analyzed,  should 


1  Pension  funds  for  municipal  employees  and  railroad  pension  systems  in  the  United  States.     March  14, 
1910.    Published  as  Senate  Document  No.  427,  61st  Congress,  2d  Session. 

21 


22 

prove  of  great  value  to  all  similar  funds.  Since  at  the  time  of  the  publi- 
cation of  the  results  of  the  survey  referred  to  no  complete  study  had  been 
made  of  this  or  of  any  of  the  other  funds,  it  is  thought  that  this  report  and 
the  one  recently  made  on  the  New  York  City  teachers'  pension  fund x  will 
have  a  special  significance. 

Origin  of  the  New  York  Police  Pension  Fund 

The  origin  of  the  present  police  pension  fund  dates  as  far  back  as 
1857,  when  the  ''Police  Life  and  Health  Insurance  Fund"  was  established. 
The  original  insurance  features  providing  for  the  relief  of  members  in- 
jured in  the  performance  of  duty  and  of  those  dependent  upon  them  for 
their  support,  in  case  such  injury  resulted  in  death,  were  soon  changed  to 
a  pension  plan.  The  first  pensions  in  amounts  not  exceeding  $150  per 
annum  were  granted  to  disabled  and  superannuated  members  of  the  force, 
and  to  widows  and  children  of  policemen  killed  in  the  performance  of 
duty.  Gradually  the  conditions  for  retirement  were  elaborated  and  ex- 
tended to  include  new  classes  of  employees  and  their  dependents.  The 
rates  were  increased  from  time  to  time  until  at  present  the  maximum  pen- 
sion to  a  member  of  the  force  is  $1750,  and  to  a  widow  $600  per  annum. 
The  sources  of  the  fund,  limited  in  the  beginning  to  gifts  and  rewards  on 
account  of  extraordinary  services  of  members  of  the  police  force  and  to 
proceeds  of  sales  of  lost  or  stolen  property,  were  gradually  increased  by 
the  diversion  to  the  fund  of  public  moneys. 

Brief   Statement   Showing   Changes  in  Law 

The  following  historical  review  of  the  laws  relating  to  the  police  pen- 
sion fund  is  a  condensed  statement  from  a  report  prepared  by  Mr.  Henry 
W.  Hardon  and  published  by  the  pension  committee  of  the  Citizens'  Union 
of  the  City  of  New  York  (January,  1911)  : 

Laws  of  1857,  Chap.  569.  The  legislature  created  the  Metro- 
politan Police  District  under  State  control,  consisting  of  New  York, 
Kings,  Richmond,  and  Westchester  Counties.  It  established  the 
"Police  Life  and  Health  Insurance  Fund"  to  consist  of  "all  re- 
wards, fees,  gifts  and  emoluments  .  .  .  paid  and  given  for  ac- 
count of  extraordinary  services  of  any  member  of  the  police  force, 
and  all  moneys  arising  from  the  sale  of  unclaimed  goods"  (Sec.  24). 

It  provided  for  the  payment  out  of  this  fund,  upon  the  ap- 
proval of  the  police  board,  of  the  "necessary  expenses"  of  any 
member  of  the  force  occasioned  by  bodily  injury  sustained  in  the 
course  of  duty,  and  for  the  payment,  with  like  approval,  of  $1,000, 
if  the  injury  caused  disability  which  was  likely  to  be  permanent; 
or  of  $2,000  to  any  person  "absolutely  interested  pecuniarily  in  the 
continuance  of  his  life"  if  the  injury  resulted  in  death. 

Laws  of  1860,  Chap.  259.  The  "Police  Life  and  Health  In- 
surance Fund"  became  the  "Poliee  Life  Insurance  Fund,"  to  which 
also  fines  imposed  on  the  members  of  the  force  and  the  proceeds  of 
suits  for  penalties  under  the  act  were  added.  It  authorized  the 
Police  Board  to  pay  pensions  "in  their  discretion"  (1)  to  the  mem- 
bers of  the  force  in  case  of  (a)   disability  or  (b)  superannuation 


"^i  Report  upon  the  condition  of  the  Public  School  Teachers'  Retirement  Fund,   by  Actuary  Wm.  A. 
Hutoheson,  New  York,  October  1,  1913. 


23 

after  ten  years'  service;  and  (2)  to  widows  during  widowhood  or 
children  under  16  years  of  members  killed  or  dying  of  injuries 
sustained  in  the  discharge  of  duty.  No  pension  was  to  exceed 
$150. 

Laws  of  1864,  Chap.  403,  Sec.  67.  This  act  was  like  the  act  of 
1860,  except  that  it  contained  a  further  provision  that  all  pensions 
were  discretionary,  might  be  terminated  at  discretion,  and  should 
not  be  ' '  chargeable  as  a  matter  of  legal  right ' '  against  the  fund. 

Laws  of  1867,  Chap.  806,  Sec.  16.  This  act  amended  the  act  of 
1864  by  increasing  the  pensions  to  policemen  disabled  in  the  course 
of  duty  and  to  widows  and  children  of  policemen  dying  from  in- 
juries sustained  in  the  course  of  duty  to  a  sum  not  exceeding 
$300. 

Laws  of  1868,  Chap.  535.  This  act  amended  the  acts  of  1864 
and  1867  by  providing  for  pensions  only  if  the  policeman  was  in- 
jured "by  reason  of  the  performance  of  duty  and  without  fault  on 
his  part. ' '  It  increased  the  rate  for  all  pensions  to  a  sum  ' '  not  ex- 
ceeding $300,"  and  extended  the  age  of  pensionable  children  to  13 
years.    It  retained  the  precautionary  provisions  of  the  act  of  1864. 

Up  to  this  time,  therefore,  the  course  of  legislation  had  been 
such  as  to  place  from  time  to  time  new  safeguards  about  the  pension 
system,  to  prevent  the  granting  of  pensions  except  in  meritorious 
cases,  and  to  make  it  clear  that  the  proposed  pensioners  had  no 
vested  rights. 

Laws  of  1870,  Chap.  137.  The  legislature  passed  an  act  "to  re- 
organize the  local  government  of  the  City  of  New  York."  It  re- 
pealed the  act  of  1857,  and  created  a  city  police  department,  to 
which  were  transferred  all  the  members  of  the  Metropolitan  Police 
Department,  who  at  the  time  of  the  passage  of  the  act  were  assigned 
to  duty  in  New  York  City  at  the  salaries  they  were  then  receiving; 
it  provided  for  the  division  of  the  former  Metropolitan  Police  Life 
Insurance  Fund,  and  the  creation  of  the  new  "Police  Life  Insurance 
Fund"  (Sec.  66),  composed  as  before,  to  be  administered  by  the 
city  chamberlain  as  trustee. 

Laws  of  1870,  Chap.  383.  This  supplemental  act  continued 
(Sec.  19)  the  provisions  of  the  act  of  1867  for  contributions  to  the 
fund  by  all  members  of  the  police  force  at  the  rate  of  50  cents  a 
month  (Sec.  19),  and  conferred  for  the  first  time  power  to  retire, 
for  the  good  of  the  service,  captains  or  sergeants  on  a  pension  not 
exceeding  one-half  their  salary,  and  patrolmen  on  a  pension  not  ex- 
ceeding $400  per  annum  (Sec.  19),  without  reference  to  physical 
condition  or  length  of  service.  It  omitted  the  precautionary  provi- 
sions of  the  act  of  1864.  It  thus  became  possible  to  appoint  a  man 
one  day  and  retire  him  the  next,  and  all  appointments  and  probably 
all  retirements  were  made  as  matters  of  favor. 

Laws  of  1871,  Chap.  126.  This  act  repealed  all  the  preceding 
pension  acts,  constituted  the  police  commissioners  trustees  of  the 
Police  Life  Insurance  Fund,  and  provided  for  a  contribution  of 
one  dollar  a  month  from  each  member  of  the  force.    Pensions  were 


24 

provided  for  policemen  disabled  or  superannuated  after  ten  years' 
service,  and  for  widows  and  children  at  the  rates  of  the  act  of  1868. 
The  provisions  of  the  act  of  1870  for  dismissals  on  pension  for  the 
good  of  the  service  at  the  rates  provided  in  that  act  were  retained 
and  extended  to  surgeons  and  clerks.  Thus  the  two  systems  of 
pensions  were  running  together,  pensions  for  persons  disabled  in 
the  service  and  their  widows  and  children  at  the  old  low  rate,  and 
pensions  on  retirement  at  discretion  at  the  new  high  rate. 

Laws  of  1873,  Chap.  335,  "to  reorganize  the  local  government  of 
the  City  of  New  York,"  authorized  the  retirement,  by  unanimous 
vote  of  the  full  board,  of  officers,  patrolmen,  and  surgeons  "dis- 
abled in  the  actual  performance  of  duty"  at  a  pension  not  to  exceed 
one-third  the  salary.  The  prior  acts  above  mentioned  were  repealed 
(Sec.  119),  excepting  the  provisions  for  pensions  to  widows  and 
children,  contained  in  the  act  of  1871. 

Laws  of  1878,  Chap.  389.  The  country  had  now  recovered 
from  the  panic  of  1873,  and  the  long  period  of  depression  which 
followed.  A  boom  was  on.  Prices  and  salaries  were  high.  This 
act  created  the  Police  Pension  Fund,  consisting  of  the  old  Police 
Life  Insurance  Fund,  composed  as  before,  except  that  the  contribu- 
tions were  increased  to  three  dollars  a  month  (Sec.  3).  It  intro- 
duced two  innovations:  (1)  it  gave  the  members  of  the  force  the 
absolute  right  to  retire  after  twenty  years'  service,  and  (2)  it  pro- 
vided that  all  pensions  granted  on  retirement  after  twenty  years' 
service  "shall  be  for  the  natural  life  of  the  officer  and  shall  not  be 
revoked,  repealed  or  diminished."  The  only  important  change  of 
pension  rates  was  the  provision  that  in  case  of  retirements  for 
disability  or  after  twenty  years'  service  the  rate  should  be  from 
one-fourth  to  one-half  the  salary,  no  pension  to  exceed  $1,000.  At 
this  time  captains  were  getting  $2,000  salary,  inspectors  $3,500,  and 
the  superintendent  $7,500.  Except  in  the  case  of  twenty-year  pen- 
sions the  precautionary  clauses  of  the  act  of  1864  were  retained. 

Laws  of  1882,  Chap.  410,  Consolidation  Act.  This  act  made  no 
change,  and  merely  restated  the  existing  law. 

Laws  of  1882,  Chap.  330.  This  act,  modifying  the  Consolida- 
tion Act,  introduced  for  the  first  time  a  pension  for  superannuation 
without  limit  of  service,  increased  the  retiring  pension  after  twenty 
years  to  not  less  than  one-half  the  salary,  authorized  pensions  to 
the  superintendent  and  inspector  of  $1500  and  $1200  respectively, 
authorized  all  previous  pensions  to  be  increased  to  the  new  scale 
(Sec.  6),  for  the  first  time  continued  the  pension  to  policemen  re- 
tired after  twenty  years'  service  to  their  widows  and  children,  but 
not  to  exceed  $50  (Sec.  7),  and  for  the  first  time  exempted  pension 
moneys  from  seizure  on  execution  (Sec.  10). 

Laws  of  1885,  Chap.  364.  This  act  provided  for  large  diver- 
sions of  public  moneys  to  the  Pension  Fund,  increased  pensions  to 
inspectors  and  captains,  and  provided  for  continuation  to  widows 
or  children  of  all  pensions  to  policemen  in  the  discretion  of  the  com- 
missioner, but  not  to  exceed  $600. 


25 

Laws  of  1887,  Chap.  574;  1890,  Chap.  531;  1892,  Chap.  52; 
1894,  Chap.  536.  These  acts  increased  the  pensions  of  all  officers 
above  the  grade  of  patrolmen  to  sums  exactly  half  the  salary  they 
were  receiving  at  the  time  of  retirement.  The  act  of  1887  also  in- 
creased the  pensions  of  widows  and  children  of  pensioners  to  a  sum 
not  exceeding  $600,  leaving  other  widows  and  children  at  a  sum  not 
exceeding  $300. 

Laws  of  1888,  Chap.  575.  This  act  created  for  the  first  time  the 
power  to  retire  compulsorily  without  proof  of  incapacity,  any  mem- 
ber of  the  force  who  had  become  sixty  years  of  age,  on  a  pension  of 
not  less  than  one-half  the  salary.  Civil  "War  veterans  were  excluded 
from  this  provision  by  Laws  of  1892,  Chap.  82,  and  Mexican  War 
veterans  by  Laws  of  1892,  Chap.  178.  These  provisions  are  still  in 
force. 

Laws  of  1897,  Chap.  378,  Sees.  354-5,  the  New  Charter.  This 
left  the  preceding  pension  law  substantially  as  it  was.  The  im- 
portant changes  were  the  imposition  of  the  age  limit  of  fifty-five 
years  for  voluntary  retirement  after  twenty  years '  service.  "While  the 
pension  rates  for  officers  above  patrolmen,  and  for  widows,  and 
children  remained  as  before,  the  rates  for  patrolmen  retired  after 
twenty  years'  service  were  increased  from  not  less  than  one-fourth 
to  not  more  than  one-half  the  salary  to  a  sum  "not  less  than"  one- 
half  the  salary,  thus  permitting  a  retirement  at  the  whole  salary, 
which  for  a  roundsman  was  $1500,  and  for  a  four-year  patrolman, 
$1400. 

Laws  of  1899,  Chap.  674.  This  act  made  the  matrons  part  of 
the  uniformed  force,  gave  a  salary  of  $1,000,  and  conferred  the 
absolute  right  to  retire  after  twenty  years'  service  at  a  pension  of 
not  less  than  one-half  the  salary. 

Laws  of  1901,  Chap.  466,  Amended  Charter.  This  added  the 
telegraph  service,  boiler  inspectors,  and  surgeons  to  the  police  force, 
if  they  were  not  there  before.  No  change  was  made  in  pension 
rates. 

Laws  of  1907,  Chap.  445.  This  act  placed  the  dependent  par- 
ents of  a  policeman  killed  in  the  course  of  duty,  or  of  one  who  died 
as  a  result  of  injuries,  on  the  pension  roll  at  a  rate  not  to  exceed 
$600. 

The  above  indicated  changes  in  the  law  affecting  the  pension  rates  of 
the  fund  are  well  illustrated  by  Table  I  (see  appendix,  page  110). 

Increasing  Revenues  Provided 

The  gradual  increases  in  the  revenues  provided  for  meeting  the  grow- 
ing obligations  of  the  fund,  which  matured  under  laws  extending  enlarged 
benefits  to  policemen,  are  summarized  below : 

1860,  Chap.  259,  Sec.  66.  Police  Life  Insurance  Fund. 

1860,  Chap.  259,  Sec.  66.  Fines  imposed  on  members. 

1860,  Chap.  259,  Sec.  66.  Gifts  and  rewards. 

1860,  Chap.  259,  Sec.  66.  Proceeds  of  suits  for  violations. 

1860,  Chap.  259,  Sec.  66.  Proceeds  of  lost  or  stolen  property  unclaimed. 


26 

1871,  Chap.  126,  Sec.    2.  One  dollar  a  month  deductions  for  lost  time. 

1878,  Chap.  389,  Sec.    3.  Three  dollars  a  month  deductions  for  lost  time. 

1882,  Chap.  330.  Not  exceeding  four  dollars  a  month  deductions. 

1885,  Chap.  364.  Proceeds  of  sales  of  condemned  property. 

1885,  Chap.  364.  Deductions  for  absence. 

1885,  Chap.  364.  Penalties  ($50)  for  failure  to  report  boiler  inspections. 

1885,  Chap.  364.  Twenty-five  per  cent  of  excise  moneys  not  exceeding  $125,000. 

1885,  Chap.  364.  Proceeds  of  pistol  permits  ($2.50). 

1885,  Chap.  364.  Masked  ball  licenses  ($5). 

1885,  Chap.  364.  All  unexpended  balances  of  appropriations. 

1888,  Chap.  552.  Twenty-five  per  cent  of  excise  moneys  not  exceeding  $200,000. 

1890,  Chap.  532.  Twenty-five  per  cent  of  excise  moneys  not  exceeding  $250,000. 

1891,  Chap.  351.  $300,000  from  excise  moneys. 

1892,  Chap.  539.  Any  deficiency  must  be  supplied  by  Board  of  Estimate. 

1893,  Chap.  338.  One-half  penalties  recovered  in  New  York  County  for  viola- 

tions of  agricultural  law. 
1893,  Chap.  529.  Two  per  cent  of  salaries. 
1904,  Chap.  626.  $430,000  from  excise  moneys. 

The  changes  in  salaries  of  the  members  of  the  police  force  are  pre- 
sented in  Table  II  (see  appendix,  page  112). 

Increase  in  Demands  for  Pension  Payments 

During  the  56  years  of  the  existence  of  the  fund,  its  obligations  have 
grown  in  a  manner  wholly  unexpected.  During  this  time  its  income  has 
also  increased  by  the  application  of  new  municipal  revenues ;  by  deductions 
from  payrolls;  and  by  the  utilization  of  lapsed  appropriations.  With 
these  increases  the  fund  was  able  to  meet  its  obligations  until  1904,  when 
direct  appropriation  by  the  city  from  the  tax  budget  was  resorted  to.  The 
annual  pension  payments,  which  amounted  in  1858  to  $30,  gradually  in- 
creased to  $2,094,866.58  in  1912.  The  annual  revenues  increased  from 
$423.10  in  1857  to  $961,194.82  in  1912.  Table  III  (see  appendix,  page 
114)  furnishes  the  detail  of  this  growth,  and  Chart  I  presents  graphically 
the  relation  of  annual  revenues  to  expenditures.  On  Chart  I,  the  solid  or 
" pension"  line  indicates  the  annual  amounts  expended  for  pensions,  and 
the  dotted  or  " revenue"  line  the  annual  revenues  of  the  fund  received 
from  various  sources  as  provided  by  law.  An  additional  or  "deficit"  line, 
drawn  by  means  of  dashes  and  circles,  shows  the  amounts  supplied  out 
of  the  general  tax  levy  which  covered  the  annual  deficiencies  of  the  fund 
since  1904.  This  chart  is  interesting  and  significant  from  two  standpoints. 
It  points  out  the  fact  that  the  fund  has  failed  to  be  self-supporting,  and 
that  the  annual  pension  payments  have  recently  increased  at  a  very  rapid 
rate.  The  actuarial  report  shows  (see  also  Chart  V,  page  57)  that  under 
indicated  assumptions  this  rapid  increase  will  continue  about  35  years 
when  the  demands  will  approximate  the  normal. 

Inability  op  Fund  to  Meet  Obligations  without  Resort  to  Taxation 

The  amounts  made  available  for  the  payment  of  pensions  by  multiply- 
ing sources  of  revenue,  other  than  direct  taxation,  finally  became  inade- 
quate, as  is  indicated  in  Chart  I  (page  27)  by  means  of  the  dotted  line. 
A  comparison  of  this  with  the, solid  or  "pension"  line  shows  the  discrep- 
ancy between  revenues  and  matured  claims.  That  is,  even  with  its  in- 
creased revenues,  about  1880  the  matured  obligations  became  so  large  that 
the  reserve  was  threatened  with  exhaustion,  and  but  for  further  aid  the 
fund  would  be  no  longer  on  a  self-supporting  basis. 


27 

Beginning  of  Direct  Taxation 

The  excess  of  revenues  over  pension  payments,  accumulated  and  in- 
vested, during  the  first  15  years  of  the  existence  of  the  fund  (1857-1881) 
was  consumed  in  meeting  the  annual  deficiencies  incurred  during  the  suc- 
ceeding seven  years  (1882-1888).  Its  reserve  all  gone,  the  fund  during 
the  following  seven  years  (1889-1895)  lived  only  by  a  hand-to-mouth  exist- 
ence, with  no  certainty  that  it  would  be  able  to  meet  demands. 


CHART   I^SHOW/NG  THE  ANNUAL  PENSION  PAYMENTS  AND  REVENUES 
OP  THE  POL  ICE  PENSION  EUND  EROM  1857  to  19/2 

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If  00.000  - 
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1 

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SIWU/K  PENSION  P/IYMENTS 

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COYf/teO  BY  DIRECT  Af>P/>OPfH/ITI0NS        [ — » — •—._»_ 
UNO  THE  ISSUE  Of  SPEC IX  L  PE1ENUE  BONOS) 

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jo           isos           i9io              YCATRS 

In  1885,  authority  was  given  to  use  the  unexpended  balances  of  ap- 
propriations for  "salaries  of  the  uniformed  force."  This  proving  inade- 
quate, other  revenues  were  set  aside.  The  laws  of  1888,  1890,  and  1891 
provided  for  the  use  of  certain  excise  moneys,  and  since  1893,  2%  has  been 
deducted  from  the  salary  roll  for  the  benefit  of  the  fund.  But  these  were 
not  enough  to  keep  pace  with  the  ever-growing  obligations.  The  diversion 
of  miscellaneous  revenues  had  been  in  the  nature  of  appropriations.  The 
city  thereafter  definitely  adopted  the  policy  of  making  good  deficiencies  by 
taxation. 

This  conclusion  was  reached,  qualifiedly  at  first,  in  authorizing  the 
use  of  the  unexpended  balances.  But  the  practice  proved  to  be  vicious,  as 
it  put  a  premium  on  "padding"  the  estimates.  In  1896  an  "unexpended 
balance  of  appropriation"  amounting  to  $375,492.77  became  available,  and 


28 

the  total  receipts  increased  to  $1,034,058.78  (see  upward  jump  in  "reve- 
nue" line  on  Chart  I).  This  enabled  the  fund,  to  put  by  and  invest  $331,- 
187.04  in  bonds  for  future  emergencies.  The  emergency  was  not  long  de- 
layed. In  1897  the  excess  of  revenues  over  payments  was  small,  but  the 
increase  in  demands  for  years  following  was  rapid. 

Effect  of  Consolidation 

In  1898,  due  to  the  "Greater  City"  consolidation,  the  fund  took  over 
the  pension  funds  of  the  department  of  public  parks  of  the  boroughs  of 
Manhattan  and  the  Bronx  and  of  the  police  departments  of  the  county  of 
Richmond  and  the  borough  of  Brooklyn.  Of  these  funds  only  the  two  first 
mentioned  turned  over  a  small  reserve  ($83,002.07  in  all),  while  the  Brook- 
lyn fund  showed  a  deficiency  of  $8,335.40.  The  pensioners  taken  over  with 
these  funds  were,  however,  large  in  number,  and  the  resulting  increase  in 
liability  of  the  new  pension  fund  was  by  no  means  counterbalanced  by 
the  small  increase  in  income  derived  from  the  capital  turned  in  by  the  old 
funds,  and  from  the  2%  salary  contributions  of  the  increased  active  force. 

Direct  Taxes  Finally  Accepted  as  Principal  Source  of  Revenue 

As  has  been  said,  the  miscellaneous  revenues  as  provided  by  law  soon 
became  entirely  inadequate  to  meet  the  obligations,  and  since  1901  have 
not  approximated  the  amount  required  to  pay  pensions.  In  1902  the  city 
got  under  the  load.  In  1903,  1904,  and  1905  the  fund  applied  the  invested 
surplus  of  1896  toward  meeting  annual  deficiencies,  and  since  1904  these 
have  been  estimated  and  covered  each  year  by  direct  appropriations  from 
the  general  tax  levy.  These  straight  contributions  by  the  taxpayers  in- 
creased each  year  in  amount.  As  shown  in  Table  VI,  page  117,  and  Chart 
II,  page  32,  they  constituted  the  following  percentages  of  the  total  fund 
receipts  during  the  years  indicated: 

1904 16.0%  1908 24.2% 

1905 15.7%  1909 25.8% 

1906 27.5%  1910 36.0% 

1907 26.9%  1911 45.4% 

1912 54.1% 

Causes  of  Increase  in  Pension  Payments — Increase  in  Force 

The  most  important  contributing  cause  for  the  rapid  rise  of  the  ' '  pen- 
sion" payment  line  is  the  increase  in  the  active  force  during  the  56  years 
under  observation.  The  comparative  strength  of  the  pensionable,  or  uni- 
formed, police  force  at  the  close  of  the  years  stated  was  as  follows: 

1858 1,430  1898 l  7,457 

1863 1,856  1901 7,510 

1880 2,519  1902 7,673 

1885 2,898  1903 8,175 

1887 3,232  1904 8,272 

1890 3,525  1905 8,859 

1892 3,731  1906 8,873 

1893 3,842  1907 9,461 

1894 3,859  1908 10,012 

1895 3,825  1909 10,162 

1896 4,609  1910 10,177 

1897 5,002  1911 10,207 

1912 10,371 


1  Consolidation. 


29 

Maturity  of  Obligations  op  Earlier  Years 

Another  chief  cause  of  rapid  increase  in  pension  payments  in  recent 
years  is  the  fact  that  relatively  few  of  the  early  pension  obligations  ma- 
tured until  many  years  after  they  were  incurred.  In  comparing  the 
growth  of  the  pensionable  force  with  the  increase  in  pension  payments,  it 
must  be  kept  in  mind  that  there  is  no  direct  or  immediate  relation  between 
these  two  elements.  That  is  to  say,  that  a  present  increase  in  the  force 
will  have  no  effect  on  the  amount  of  the  present  pension  roll,  and  will  only 
be  instrumental  in  increasing  the  annual  pension  payments  at  some  future 
period  when  the  new  entrants  will  be  pensioned.  Since  the  pension  plan 
was  begun  only  56  years  ago,  relatively  few  obligations  matured  prior  to 
1882.  Then  was  the  beginning  of  the  rapid  increase,  which  will  continue 
during  a  period  of  approximately  fifty  years — the  first  thirty-five  years' 
increase  being  largely  due  to  the  retirement  of  men  in  the  service  prior 
to  1882,  the  increases  of  the  next  15  years  being  largely  due  to  the  retire- 
ment of  men  who  entered  subsequently.  Both  of  these  increases  will  be 
affected  by  the  larger  number  of  men  on  the  force. 

Taking  Over  of  Force  on  Consolidation 

The  solid  "pension"  line  on  Chart  I,  for  instance,  shows  a  substantial 
upward  jump  in  1898.  This  is  not  due  to  the  increase  in  the  active  force 
from  5,002  to  7,457  members  by  consolidation,  but  to  the  large  number  of 
matured  obligations  to  pensioners  taken  over  by  the  consolidated  fund. 
The  effect  of  the  sudden  growth  in  the  numerical  strength  of  the  active 
force,  however,  influenced  the  upward  rise  of  the  "pension"  line  in  later 
years  when  the  additional  force  became  gradually  eligible  for  retirement. 
From  what  has  been  said  it  is  evident  that  it  is  difficult  to  foresee  the 
consequences  in  the  annual  pension  payments  of  a  present  increase  in  force. 
This  difficulty  is  augmented  by  the  consideration  of  counteracting  causes 
for  decrease  in  the  annual  pension  charge. 

Causes  Counteracting  Increases 

The  two  most  important  of  these  causes  are  the  mortality  of  pen- 
sioners, and  the  revocation  and  reduction  of  pensions  in  the  discretion  of 
the  administrators  of  the  fund.  The  prospective  effect  of  these  causes  on 
the  annual  pension  expenditures  is  also  difficult  of  exact  prediction,  be- 
cause of  the  absence  of  reliable  mortality  statistics  of  police  pensioners  and 
the  impossibility  of  predicting  the  extent  to  which  discretionary  powers 
will  be  exercised  by  a  future  administration.  Notwithstanding  the  difficul- 
ties of  forecasting  the  effect  of  the  counteracting  causes  just  mentioned, 
they  must  be  kept  in  mind  when  considering  the  amount  of  the  demands 
for  payments  and  the  net  increases  which  each  year  must  be  financed. 
Among  the  causes  which  make  for  increase  are  the  increasing  liberality  of 
pension  provisions  including  new  classes  of  employees  and  their  depend- 
ents, and  increases  in  pension  rates.  Among  the  causes  which  make  for 
decrease  are  the  various  restrictive  provisions,  such  as  the  imposition  of 
an  age  limit  and  extension  of  the  term  of  service  required  as  a  condition 
for  retirement,  and  the  reduction  of  pension  rates  and  various  other  provi- 
sions intended  as  safeguards  of  the  fund. 

Causes  of  Conspicuous  Fluctuations 

The  operation  of  most  of  the  causes  discussed  is  relatively  constant. 
In  examining  the  "pension"  line  on  Chart  I   (page  27),   certain  con- 


30 

spieuous  fluctuations  in  the  general  upward  rise  are  noticeable.  These 
may  be  explained  to  a  certain  extent  as  caused  by  changes  in  pension  pro- 
visions. The  sudden  upward  tendency  of  the  "pension"  curve  between 
1867  and  1870,  for  instance,  coincides  with  the  general  increase  of  pension 
rates  from  $150  to  $300  in  1867  and  1868.  The  still  more  pronounced  up- 
ward turn  of  the  curve  after  1870  is  no  doubt  partially  due  to  the  legal 
provision  permitting  the  retirement  of  members  of  the  force  ' '  for  the  good 
of  the  service ' '  without  reference  to  physical  condition  or  length  of  service. 
The  period  between  1873  and  1878  does  not  show  a  continuation  of  tho 
rapid  increase  of  the  preceding  years,  but,  on  the  contrary,  indicates  in 
1875,  1876,  and  1878  pronounced  decreases.  This  was  doubtless  due  to  the 
repeal  in  1873  of  the  provisions  for  the  retirement  "for  the  good  of  the 
service  " ;  to  the  general  reduction  in  pension  rates ;  and  to  the  extension  of 
powers  to  the  police  board  to  revoke  and  reduce  all  pensions.  These 
causes  had  the  effect  of  checking  the  growth  of  the  pension  roll,  and  de- 
creasing the  amount  of  annual  payments  required.  During  the  next  period 
of  19  years  (1878-1897)  the  "pension"  curve  does  not  indicate  any 
marked  fluctuations,  but  rises  almost  evenly  from  $67,401.78  in  1878  to 
$686,640.75  in  1897.  This  is  largely  explained  by  changes  in  rates,  re- 
ductions in  service  requirements,  the  making  of  pensions  irrevocable, 
and  the  continuation  of  a  policeman's  pension  to  his  widow  or  children 
(Table  I,  page  110).  These  were  the  reasons  which,  in  addition  to  the 
current  influence  of  previous  increases  in  the  active  force,  explain  the 
marked  and  continuing  rise  of  the  "pension"  curve.  After.  1897  the 
sudden  jump  of  the  curve  of  payments  in  1898,  as  previously  explained, 
was  the  result  of  the  increase  in  the  number  on  the  pension  roll  by  the 
transfer  of  pensioners  of  Brooklyn  and  the  other  new  areas  as  charges 
against  the  pension  fund  of  the  Greater  City  of  New  York  after  con- 
solidation. During  this  year,  1898,  the  fund  also  expended  more  than 
$20,000  in  the  payment  of  over-due  pensions  to  pensioners  of  the  three 
funds  absorbed  by  the  present  fund.  This  accounts  for  the  slightly  smaller 
payment  in  1899.  If  this  retroactive  expenditure  were  subtracted  from 
the  total  pension  payments  of  1898  the  resulting  amount,  represent- 
ing the  true  annual  disbursement  for  current  pensions,  would  register  on 
the  chart  below  the  point  indicated  and  the  next  year  would  show  an  in- 
crease over  the  pension  payments  in  1898.    The  three  years,  1898,  1899,  and 

1900  of  the  administration  of  the  fund  by  the  Greater  New  York  police 
boards  are  noticeable  on  the  chart  by  the  very  slight  increase  of  the  "pen- 
sion" curve.  This  is  accounted  for  by  the  fact  that  it  was  in  the  previous 
year  (1897)  that  a  law  was  passed  imposing  the  age  limit  of  55  years  for 
voluntary  retirement  after  25  years'  service.     The  next  12  years,  from 

1901  to  1912,  show  the  cumulative  and  progressive  effect  of  measures  passed 
in  prior  years.  There  is  a  pronounced  upward  rise  of  the  pension  curve, 
the  annual  pension  expenditures  increasing  from  $909,173.65  in  1901  to 
$2,094,866.58  in  1912. 


CHAPTER   III 

The  Last  Twelve  Years  of  Pension  Fund  Experience 

The  steady  increases  in  accrued  liabilities  of  the  fund — to  meet  which 
no  reserve  had  been  provided  during  the  many  years  when  the  pension 
force  was  on  the  active  service  list — now  became  felt  in  increasing  propor- 
tion. From  year  to  year  prospective  annuitants  became  more  numerous. 
The  maturing  claims  were  doubly  accentuated  by  age  and  increasing  disa- 
bility on  the  one  hand,  and  the  absence  of  adequate  legal  provisions  for 
meeting  increasing  liabilities  on  the  other. 

Increase  in  Percentage  op  Number  Retiring 

For  the  purpose  of  indicating  the  growth  of  the  pension  roll  with  re- 
gard to  the  number  of  pensions  granted  during  the  56  years  of  the  experi- 
ence of  the  fund  and  the  number  of  pensions  since  terminated  or  remain- 
ing active,  Table  IV  (see  appendix,  page  115)  has  been  compiled  from 
the  card  records  of  the  pension  bureau  of  the  police  department.  It  is 
interesting  to  note  that  of  the  total  6,683  pensions  granted,  2,759,  or 
41.3%,  were  placed  on  the  roll  during  the  first  44  years  of  the  existence 
of  the  fund,  while  3,924  pensioners,  or  58.7%  were  retired  by  single  com- 
missioners during  the  last  12  years.  In  February,  1913,  3,901  pensioners, 
or  58.4%  of  the  total,  were  still  drawing  their  pensions,  and  of  these  873, 
or  22.4%,  were  on  the  pension  roll  from  12  to  56  years — having  been  re- 
tired prior  to  the  administration  of  the  police  department  by  single  com- 
missioners. 

Detailed  Statistics  op  the  Growth  op  the  Fund,  1901-1912 

The  administration  of  the  police  department  by  single  commissioners 
from  1901  to  1912,  as  previously  pointed  out,  was  marked  by  rapid  increase 
in  the  annual  pension  payments  as  well  as  by  the  steadily  increasing  in- 
ability of  the  fund  to  meet  its  maturing  pension  obligations  from  revenue 
other  than  tax  appropriations.  This  resulted  in  demands  upon  the  general 
treasury  of  the  city  to  cover  the  annual  deficiencies  of  the  fund  by  means 
of  direct  appropriations  or  the  issue  of  special  revenue  bonds.  It  is  there- 
fore deemed  desirable  to  throw  more  light  on  this  particular  period.  For 
this  purpose  Table  V  (page  116),  setting  forth  a  detailed  statement  of  the 
receipts  of  the  fund,  and  Table  VI  (page  117),  classifying  the  same  in  five 
groups,  have  been  prepared  and  are  presented  in  the  appendix. 

These  tables  showing  the  various  items  of  receipts  each  year  include 
not  only  the  regular  revenues  which  ordinarily  are  turned  over  to  the 
fund,  but  also  the  amounts  used  in  order  to  meet  the  annual  deficiencies 
which  were  derived  either  from  the  sale  of  bonds  belonging  to  the  fund,  or 
from  special  or  extraordinary  revenues  such  as  direct  appropriations  and 
the  sale  of  special  revenue  bonds.  Since  during  the  last  12  years  the  total 
receipts,  as  specified  above,  were  used  in  paying  pensions  with  only  small 
cash  balances  or  deficits  carried  over  from  year  to  year,  the  presentation 
of  the  total  receipts  from  all  sources  facilitates  the  determination  of  the 

31 


32 

relative  importance  of  each  source,  and  its  adequacy  or  inadequacy  in 
meeting  the  annual  pension  payments  of  the  fund.  Chart  II  graphically 
illustrates  the  relative  importance  of  the  five  groups  of  receipts  during 
the  years  1901-1912. 

Decreasing  Importance  of  Contributions  op  Force 

An  important  point,  illustrated  by  this  chart,  is  that  the  contribution 
of  2%  from  the  salaries  of  the  active  force,  although  steadily  increasing 


in  amount,  is  nevertheless  of  less  and  less  importance  relatively.  In  1901 
these  salary  deductions  provided  25%  of  the  total  payments  of  the  year. 
From  this  time  on  they  have  yielded  each  year  a  smaller  percentage  until 
in  1912  the  amount  derived  from  this  source  was  only  13.5%  of  the  amount 
expended  for  pensions.  It  is  also  to  be  noted  that  the  miscellaneous  reve- 
nues, while  fluctuating  in  amount  each  year,  do  not  show  a  tendency  to 
increase  in  the  future.  As  a  means  of  meeting  the  annual  matured  liabili- 
ties of  the  fund,  they  are  becoming  less  and  less  adequate ;  furnishing  75% 
of  the  total  receipts  in  1901  and  in  1912  only  32.4%.  Since  1903  it  has 
become  necessary  to  provide  increasingly  larger  amounts  from  other 
sources.  These  were  furnished  during  1903,  1904,  and  1905  by  the  sale  of 
bonds  forming  the  reserve  capital  of  the  fund ;  but  the  amounts  thus  made 
available  formed  only  9.9%,  11.8%,  and  11.2%  of  the  total  receipts  during 


33 

the  years  mentioned ;  so  small  as  compared  with  the  accrued  liabilities  as  to 
be  negligible. 

Increasing  Importance  op  Appropriations  from  Tax  Budget 

Unless  an  adequate  reserve  and  adequate  annual  contributions  were 
provided,  there  was  only  one  way  out,  namely,  to  meet  currently  matur- 
ing obligations  from  taxes.  In  1904  the  city,  by  virtue  of  a  law  passed  in 
1892,  had  to  appropriate  $197,000,  or  16%  of  the  total  receipts,  to  meet 
the  annual  deficiency  of  that  year.  This  extraordinary  source  of  revenue 
became  of  increasing  importance  each  year  as  an  item  of  receipts,  until 
in  1912  it  constituted  over  one-half,  $1,135,188.22,  or  54.1%,  of  the  total 
amount  made  available  for  the  payment  of  pensions.  The  proportion  of 
the  contributions  from  taxes  must  continue  to  increase  rapidly  during  the 
next  thirty-five  years  when  the  city  in  one  form  or  another  will  contribute 
over  90%  of  the  cash  for  meeting  current  payments. 

Increase  in  Percentage  op  Pensions  to  Payrolls 

The  growth  of  the  pension  fund  during  the  period  1901  to  1912  as  com- 
pared with  the  growth  of  the  active  force  is  indicated  by  Table  VII  (see 
appendix,  page  118) .  As  previously  mentioned,  there  is  no  direct  or  imme- 
diate relation  between  one  and  the  other.  The  comparison,  however,  serves 
as  a  basis  for  a  proper  appreciation  of  the  proportions  of  the  growth  just 
mentioned.  In  1901,  for  every  $100  expended  for  the  services  of  the  uni- 
formed force,  $8.60  was  paid  for  pensions  representing  a  consideration  for 
services  rendered  at  some  period  in  the  past.  Of  this  sum  $2  was  contributed 
by  the  active  force,  while  the  balance,  $6.60,  was  furnished  by  the  city  in  the 
form  of  miscellaneous  revenues.  The  relative  amount  required  for  the  pay- 
ment of  pensions  increased  as  time  went  on,  and  in  1912  for  every  $100 
paid  in  salaries  to  policemen,  $14.50  was  required  for  the  payment  of  pen- 
sions, the  present  force  contributing  $2  as  before,  or  13.8%,  while  the  city 
was  called  upon  to  provide  the  remaining  $12.50,  or  86.2%  of  the  amount 
expended  in  pensions.  A  graphic  illustration  of  the  comparative  annual 
increases  in  the  active  force  and  number  of  pensioners  is  presented  by 
means  of  Chart  III  (page  34).  This  chart  shows  that  the  total  number  of 
pensioners  increases  at  a  more  rapid  rate  than  the  number  of  members  of 
the  force.  During  the  entire  period  of  12  years,  1901-1912,  the  force  has 
increased  38.1%,  while  the  number  of  pensioners  has  increased  93.1%.  As 
might  be  expected,  the  increase  in  the  number  of  pensioners  was  greater 
in  the  case  of  retired  members  of  the  force  than  in  the  case  of  widows. 

Classification   of   Pensioners 

In  February,  1913,  there  were  3,901  pensioners.  This  number  included 
2,484  retired  members  of  the  force,  1,338  widows,  70  families  of  children, 
and  9  dependent  parents.  The  rates  of  pensions  drawn  by  these  four  classes 
of  pensioners  are  set  forth  in  Tables  VIII  and  IX  (see  appendix,  page 
119). 

Distribution  of  Benefits 

Table  VIII  indicates  that  1,400  former  policemen,  or  56.4%  of  the 
total  2,484  pensioners,  are  drawing  between  $700  and  $1,000  per  annum. 
This  group  is  chiefly  composed  of  patrolmen  and  sergeants  retired  on 
half  pay,  that  is,  $700  or  $875  per  annum  after  20  years  of  service.    Pen- 


34 

sioners  receiving  less  than  $700  are  695  in  number  and  form  27.9% 
of  the  total.  The  majority  of  these  pensioners  were  retired  for  disa- 
bility after  less  than  20  years'  service,  in  which  case  the  law  limits 
the  amount  of  pension  to  less  than  half  the  salary  received  on  the  date  of 
retirement.    Another  group  of  pensioners,  numbering  384  and  drawing  be- 


CHART  HI- SHOWING  THE COMP/tR/ITIVE  GROWTH  OF  THE  ACTIVE FORCE 
AND  THE  VARIOUS  CLASSES  OF  PENSIONERS  FROM  190/  to  1912 

YEARS       1901                1901                /apS               zap*               '90S              /tot               1907               /90t              /9p0                iaiO               1911                />«      Y£RRS 

NUMBCR 

NUMBER 

-     IOJOOO 

■    aooo 
a.ooo 

TOOO 
tjOOO 

aooo 

LECtMD 

ror/ti 

OUT 

numb 

m/mac*  or  pritsio»c*s 

r/O  or  »[T/*COMlMa[RS 

_-..  _ 

m/MBi 

ma 

/>  of /vmiiOMfo  cmoaeii 

■¥,000 
3-000  - 

tooo- 

■      3.0C0 

_.... 



—  -  -  -  — 



----- 





ycars  /t 

01              19 

01                    /» 

03               /9 

O*                 /J 

or           /aot            /aor            laoa            /aoa            ta/o             mi              n 

*  Ye/i/fs 

tween  $1,000  and  $2,000  annually,  comprises  15.4%  of  the  total  pensioners, 
and  is  composed  of  the  higher  ranking  police  officers — lieutenants,  captains, 
and  surgeons,  who  are  retired  on  half  pay  at  $1,125,  $1,375,  and  $1,750 
per  annum,  respectively.  Finally,  there  are  four  former  inspectors  who 
were  retired  under  an  old  law  on  half  pay,  or  $2,500  per  annum,  and  one 
former  chief  of  police  drawing  $3,000  annually. 

Table  IX  showing  the  pensions  received  by  widows,  children,  and 
dependent  parents  indicates  that  1,026,  or  72%  of  their  total  number 
(1,417),  receive  between  $300  and  $400  annually;  371,  or  26.2%  draw  less 
than  $300 ;  and  20,  or  1.4%  are  pensioned  at  a  rate  exceeding  $400.  One 
of  the  last  group  is  a  widow  who  draws  $1,000  per  annum  as  a  result  of  a 
speeial  legislative  act. 


CHAPTER   IV 
The  Fund  and  the  Machinery  for  Its  Administration 

The  provisions  of  the  law  under  which  the  police  pension  fund  is 
operated  at  the  present  time  have  been  in  force  without  any  material 
changes  since  1898.  They  are  set  forth  in  sections  351  to  357  of  the  pres- 
ent charter.  Sections  351,  352,  and  353  are  devoted  to  the  definition  of 
the  sources  of  the  fund  and  its  administration. 

Sources  of  Revenue 

The  revenues  to  the  fund  by  sources  are  as  follows: 

1.  Revenues  arising  from  the  activities  of  the  police  department : 

a.  Fees  for  steam  boiler  inspection. 

b.  Fees  for  masked   ball   permits. 

c.  Fees  for  pistol  permits. 

d.  Property  clerk's  returns. 

2.  Deductions  from  payrolls  of  the  uniformed  force : 

e.  Disciplinary  deductions — for  fines. 

f.  Disciplinary  deductions — for  lost  time. 

g.  Contributions    by    policemen — two    per    cent,    deductions 

from  all  salaries. 

3.  Revenues  from  other  departments  and  outside  sources : ' 

h.  Interest  on  bank  deposits. 

i.  Rewards  and  donations. 

j.  From  law  department,  violations  of  the  coal  law. 

k.  From  state  department  of  agriculture,  miscellaneous. 

4.  From  taxation: 

1.      Excise  moneys. 

m.    Unexpended  balances  of  appropriations. 

n.     Budget  appropriations  for  police  pension  fund. 

Trustee  of  the  Fund 

The  police  commissioner  is  trustee  and  treasurer  of  the  fund,  and  has 
complete  control  over  its  administration.    Quoting  the  law: 

"Said  trustee  may,  and  he  is  authorized  and  empowered,  from  time 
to  time,  to  establish  such  rules  and  regulations  for  the  disposition, 
investment,  preservation,  and  administration  of  the  police  pen- 
sion fund  as  he  may  deem  best." 

The  commissioner  is  under  a  $100,000  bond  to  the  comptroller  of  the 
City  of  New  York  conditioned  upon  the  faithful  discharge  of  his  duties, 
while  the  bookkeeper  of  the  police  department  is  under  a  $10,000  bond  to 
the  commissioner,  and  is  responsible  for  the  receipts  and  disbursements  of 
the  fund.  The  law  requires  that  an  annual  report  be  made  showing  the 
condition  of  the  fund,  items  of  receipt,  and  items  of  disbursements;  and 

35 


36 

on  the  first  day  of  March  each  year  a  committee  is  appointed  by  the  mayor 
to  examine  the  condition  and  audit  the  accounts  of  the  fund.  This  com- 
mittee is  composed  of  two  members  of  the  uniformed  force  and  one  retired 
member  of  the  police  department. 

Exercise  op  Discretion  in  Granting  Pensions 

Sections  354  to  357  of  the  charter  indicate,  in  a  general  way,  the  con- 
ditions under  which  pensions  are  granted,  charge  the  police  commissioner 
with  the  interpretation  of  the  law,  and  confer  upon  him  extensive  discre- 
tionary powers.  He  is  ''authorized  and  empowered  to  make  and  adopt  all 
such  rules,  orders  and  regulations  as  are  or  may  be  necessary  to  carry  out 
and  enforce  the  provisions  of  this  act  as  to  pensions."  The  pensions 
granted  under  these  sections  of  the  charter  apply  only  to  the  members  of 
the  uniformed  force,  the  composition  of  which  for  the  years  1901-1912  is 
set  forth  in  Table  X  (see  appendix,  page  170).  The  classes  of  pensions 
concerning  which  discretion  is  exercised  may  be  summarized  as  follows: 

1.  Regular  or  service  pensions. 

2.  Disability  or  invalid  pensions. 

3.  Pensions  to  widows,  children,  and  dependent  parents. 

Granting  Regular  or  Service  Pensions 

The  provisions  specifying  regular  or  service  pensions  make  the  rate 
mandatory  at  not  less  than  one-half  final  salary,  and  exempt  such  pensions 
from  revocation  and  amendment. 

Pensions  are  granted  as  a  matter  of  right: 

1.  To  all  members  who  have  served  25  years  on  the  force  and  are  55 

years  old  when  application  is  made  in  writing. 

2.  To  all  veterans  of  the  Civil  "War  who  have  served  20  years  on  the 

force  without  regard  to  age,  or  who  have  attained  the  age  of 
60  without  regard  to  length  of  service. 

In  addition,  the  police  commissioner  may  in  his  discretion  place  on 
the  pension  roll: 

1.  Members  of  the  force  of  the  age  of  55  or  over  who  apply  for  a 

pension  after  20  years  of  service. 

2.  All  members  of  the  force,  not  veterans  of  the  Civil  or  Mexican 

wars,  who  have  attained  the  age  of  60. 

Granting  Disability  or  Invalid  Pensions 

These  pensions  are  granted  to  members  of  the  force  who  are  perma- 
nently disabled  so  as  to  be  unfit  for  police  duty.  In  cases  where  a  member 
has  served  less  than  20  years,  the  pensions  are  limited  to  not  less  than  one- 
fourth  or  more  than  one-half  of  the  final  salary,  and  are  granted,  revoked, 
or  amended  in  the  discretion  of  the  police  commissioner.  Pensions  granted 
after  20  years'  service,  however,  may  not  be  less  than  one-half  of  the  final 
salary,  and  once  granted  are  exempt  from  revocation  and  amendment. 

The  charter  provides  for  the  following  groups  of  disability  benefits: 

1.  Pension  of  not  less  than  one-fourth  and  not  more  than  one-half  of 
final  salary  to  all  members  of  any  age  or  length  of  service  who 
are  disabled  in  the  performance  of  duty. 


37 

2.  Pension  of  not  less  than  one-fourth  and  not  more  than  one-half  of 

final  salary  to  all  members  of  any  age  who  have  served  more 
than  10  and  less  than  25  years,  and  who,  through  no  miscon- 
duct of  their  own,  are  disabled  so  as  to  be  unfit  for  police  duty. 

3.  Pension  of  not  less  than  one-half  of  final  salary  to  members  of 

any  age  who,  after  20  years  of  service,  are  disabled  so  as  to  be 
unfit  for  police  duty. 

It  should  be  noted  that  the  last  mentioned  provision  restricting  to  not 
less  than  one-half  of  the  final  salary  the  minimum  of  a  disability  pension 
after  20  years'  service  has  the  effect  of  also  limiting  to  a  period  of  service 
of  less  than  20  years  the  application  of  pension  rates  of  less  than  one- half 
of  salary  in  cases  of  benefits  mentioned  under  "1"  and  "2."  In  all  in- 
stances when  retirements  are  made  on  the  ground  of  disability,  the  charter 
provides  for  an  examination  of  the  member  by  '.'so  many  of  the  police  sur- 
geons as  the  police  board  may  require,"  and  the  filing  in  the  department 
of  a  certificate  setting  forth  the  cause,  nature,  and  extent  of  the  disability. 

Granting  Pensions  to  Widows,  Children,  and  Dependent  Parents 

The  law  leaves  the  granting,  revocation,  and  amendment  of  these  pen- 
sions entirely  to  the  'discretion  of  the  police  commissioner,  and  limits  the 
total  benefits  to  be  allowed  to  the  dependents  of  one  member  to  a  sum  not 
exceeding  $600  per  annum.  When,  however,  a  pension  must  be  provided 
from  the  fund  for  only  the  widow  of  a  member  who  died  in  the  service  while 
not  in  actual  performance  of  duty  or  while  drawing  a  disability  benefit 
after  less  than  20  years'  service,  such  pension  is  limited  to  an  amount  not 
to  exceed  $300  per  annum.  Pensions  to  widows  terminate  upon  remarriage 
while  the  benefits  paid  to  children  cease  upon  their  marriage,  or  upon  their 
reaching  the  age  of  18. 

The  conditions  under  which  the  pensions  to  dependents  are  granted 
are  as  follows: 

1.  To  widows  and  children: 

a.  Of  all  members  of  the  active  force,  without  reference  to  age 

or  length  of  service,  who  are  killed  in  the  actual  per- 
formance of  duty. 

b.  Of  members  of  any  age,  who  have  served  on  the  force  not 

less  than  ten  years,  whose  death  is  not  caused  by  the 
actual  performance  of  duty. 

c.  Of  all  deceased  pensioners. 

2.  To  the  dependent  parent  or  parents  of  all  members  of  the  active 

force  who  are  killed  in  the  actual  performance  of  duty. 

In  order  to  facilitate  the  study  of  the  charter  provisions  relating  to 
pensions,  the  same  are  presented  in  chart  form  (see  Chart  IV,  page  38). 

Organization  Provided  for  Administration 

The  provisions  of  the  charter  outlined  above  do  not  specify  the  de- 
tails for  carrying  the  pension  law  into  effect.    This  is  left  to  the  discretion 


38 


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39 

of  the  police  commissioner,  who  is  authorized  to  make  and  adopt  such  rules 
and  regulations  as  he  may  deem  best.  Upon  investigation  at  the  police  de- 
partment, however,  those  in  charge  of  the  inquiry  were  told  that  no  rules 
or  regulations  of  any  kind  touching  on  pension  administration  had  ever 
been  issued.  It  was  also  stated  that  no  separate  organization  nor  office  had 
ever  been  set  aside  for  the  exclusive  or  adequate  consideration  of  pension 
matters. 

Duties  of  Officers  Connected  with  Fund 

The  duties  in  connection  with  the  various  phases  of  administration 
of  the  fund  are  distributed  among  a  number  of  officials  of  the  department 
who  are  busy  with  other  routine  matters,  and  who  are  not  required  to 
cooperate  with  each  other.  Only  a  fraction  of  their  time  could  be  devoted 
to  pension  work.  The  papers  and  records  relating  to  pensions  are  not  as- 
sembled in  a  central  pension  bureau,  but  as  has  been  said  are  scattered  in 
the  various  offices  at  police  headquarters  to  suit  the  convenience  of  those 
by  whom  the  work  is  to  be  done.  The  officials  of  the  department  who  are 
connected  with  pension  administration  are  as  follows: 

1.  The  bookkeeper  of  the  department,  who  has  charge  of  the  receipts 

and  disbursements  of  the  funds. 

2.  One  patrolman,  who  acts  as  a  pension  investigator. 

3.  The  police  surgeons,  who  make  a  physical  examination  of  members 

of  the  force  retiring  for  disability. 

4.  A  pension  board,  consisting  of  six  officials  of  the  department,  who 

consider  applications  for  pensions  and  submit  recommendations 
to  the  police  commissioner. 

Duties  Performed  by  the  Bookkeeper  of  the  Department 

The  bookkeeper,  who  has  under  him  a  force  of  about  18  clerks,  is  in 
charge  of  all  financial  transactions  of  the  police  department.  His  office, 
erroneously  called  the  "pension  bureau,"  disburses  at  the  present  time 
over  $16,000,000  annually,  of  which  only  about  $2,500,000  is  paid  out  in 
pensions.  His  duties  in  connection  with  the  pension  fund,  therefore,  are 
considered  of  secondary  importance,  and  neither  he  nor  any  one  of  the 
three  clerks  who  are  occasionally  engaged  in  the  preparation  of  pension 
payrolls  devote  their  entire  time  to  pension  work.  This  work  is  regarded 
merely  as  a  matter  of  safe  keeping  of  moneys  that  come  into  the  fund,  of 
proper  accounting  for  receipts  and  disbursements,  and  of  handling  an  ordi- 
nary payroll  as  far  as  pension  payments  are  considered.  Neither  the  pen- 
sion applications  nor  other  pension  papers  are  referred  to  the  bookkeeper's 
office.  As  a  basis  for  the  payment  of  pensions,  the  special  orders  of  the 
department  dealing  with  the  pensioning  of  members  of  the  force  and  their 
dependents  are  used.  Entries  are  made  from  these  orders  into  two  kinds 
of  records  providing  information  for  each  individual  pensioner.  The  offi- 
cially discontinued  book  records,  in  which  beneficiaries  are  entered  in  the 
chronological  order  of  their  retirement,  continue  to  be  used  unofficially, 
and  present  one  kind  of  individual  record.  The  other  kind  is  a  card  sys- 
tem, recently  installed,  in  which  each  beneficiary  is  represented  by  a  sep- 
arate card.  These  records  require  duplication  of  work,  are  incomplete  with 
regard  to  retirements  of  earlier  years,  and  are  not  kept  up  to  date.    Their 


40 

present  use  is  to  provide  a  basis  for  the  preparation  of  the  pension  roll. 
The  information  contained  is  limited  to  such  data  as  would  apply  to  the 
immediate  payment  or  discontinuance  of  pensions.  The  ages  of  pensioners, 
and  other  important  data,  which  are  essential  in  the  construction  of  mor- 
tality and  experience  tables  for  the  purpose  of  ascertaining  the  present  and 
future  obligations  of  the  fund,  are  lacking. 

Since  the  pensions  to  widows  terminate  automatically  upon  their  re- 
marriage, and  the  payment  of  further  pensions  would  be  illegal,  the  book- 
keeper requires  from  every  widow  an  affidavit  to  the  effect  that  she  has  not 
remarried  before  the  monthly  allowance  is  paid.  The  ages  of  children  are 
noted  on  the  pension  records,  and  pension  payments  are  stopped  upon  their 
reaching  the  age  of  18. 

The  duties  of  the  bookkeeper  in  connection  with  the  preservation  and 
investment  of  the  fund  are  reduced  to  a  minimum  because  of  the  fact  that 
since  1905  there  has  been  nothing  to  preserve  or  to  invest.  The  amounts 
derived  from  the  various  sources,  as  provided  by  law,  are  promptly  paid 
out  to  the  pensioners,  and  since  at  the  present  time  these  amounts  are  not 
sufficient  to  pay  even  one-half  of  the  annual  obligations,  it  becomes  the 
duty  of  the  bookkeeper  to  submit  to  the  board  of  estimate  and  apportion- 
ment an  estimate  with  the  request  for  an  appropriation  to  cover  the  ex- 
pected deficiencies.  The  lack  of  proper  data  for  the  determination  of  future 
obligations  of  the  fund  prevents  the  bookkeeper  from  submitting  a  reliable 
and  intelligent  estimate.  In  calculating  future  pension  payments  it  is  as- 
sumed that  they  will  continue  to  increase  at  the  same  rate  as  in  the  past. 
The  inadequacy  of  such  a  method  is  obvious.  In  1911  and  1912  the  amounts 
appropriated  on  the  basis  of  submitted  estimates  proved  inadequate  before 
the  close  of  the  corresponding  years,  and  additional  funds  had  to  be  raised 
by  the  objectionable  method  of  issuing  special  revenue  bonds  to  provide 
for  additional  deficiencies  in  the  sum  of  $150,000  in  1911  and  of  more 
than  $250,000  in  1912  (see  Table  V,  page  116). 

The  annual  report  of  the  pension  fund  is  also  prepared  in  the  book- 
keeper 's  office,  and  presents  merely  a  statement  in  detail  of  all  receipts  and 
disbursements  of  one  year.  It  is  issued  in  book  form,  and  is  also  published 
in  the  City  Record.  The  addresses  of  the  pensioners  inserted  opposite  their 
names  are  in  many  instances  incorrect  and  obsolete,  as  was  discovered  dur- 
ing the  present  investigation  when  efforts  were  made  to  locate  some  of  the 
beneficiaries  living  in  New  York  and  elsewhere.  As  a  source  of  informa- 
tion of  the  progress  of  the  fund,  the  annual  report  is  of  no  value,  because 
it  does  not  present  any  comparative  figures  or  tables  to  show  increases  or 
decreases  in  the  annual  receipts  and  disbursements. 

Duties  of  the  Pension  Investigator 

One  patrolman,  assigned  to  the  office  of  the  fourth  deputy  commis- 
sioner, is  the  entire  investigatng  force  in  connection  with  pensions.  His 
duties  primarily  relate  to  making  inquiries  into  the  "financial"  and  "so- 
cial ' '  condition  of  women  applicants  for  pensions  and  into  applications  for 
increases  in  pensions.  Although  under  the  present  administration  the 
financial  condition  of  a  widow  is  said  not  to  be  taken  into  account  (the 
represented  policy  being  to  grant  the  maximum  amount  allowed  by  law 
whenever  she  is  found  to  be  eligible  for  a  pension),  the  investigator  in  each 
and  every  case  is  required  to  report  in  detail  the  sources  of  income  of  the 
applicant.     In  addition,  he  examines  the  service  record  of  the  deceased 


41 

husband,  with  reference  to  any  facts  which  bear  on  the  eligibility  of  his 
widow  to  a  pension,  and  presents  the  assembled  information  in  the  shape  of 
a  report  which  he  submits  to  the  pension  board. 

When  it  is  borne  in  mind  that  at  the  present  time  more  than  300 
widows'  pensions  and  increases  in  pensions  are  granted  each  year,  it  is  evi- 
dent that  one  pension  investigator  is  unable  to  investigate  all  new  applica- 
tions properly,  and  that  pension  decisions  are  delayed  because  of  the  lack 
of  a  proper  investigating  force.  It  has  also  been  ascertained  that  there  is 
no  strict  rule  or  adequate  supervision  to  compel  the  consideration  of  appli- 
cations in  the  order  of  their  receipt — that  the  pension  investigator  is  al- 
lowed to  use  his  discretion.  The  danger  of  such  a  practice  is  obvious.  It 
is  important  to  note  that  the  investigator's  work  is  almost  entirely  limited 
to  new  applications,  and  that  for  the  widow  pensioners  already  on  the  pen- 
sion list  (1,351  on  December  31,  1912)  no  adequate  provision  is  made  for 
supervision.  For  this  reason  the  illegality  or  irregularity  of  pensions 
granted  by  previous  administrations  would  not  be  discovered  except  by 
chance  or  when  an  investigation  is  made  of  a  case  in  connection  with  an 
application  for  an  increase. 

Duties  of  Surgeons 

The  retirements  of  members  of  the  force  on  the  ground  of  disability 
may  be  voluntary  on  their  part  or  compulsory  by  order  of  the  police 
commissioner.  When  the  retirement  is  voluntary,  the  member  makes  an 
application  to  his  district  surgeon,  who,  if  he  finds  him  worthy  of  con- 
sideration, refers  the  matter  to  the  chief  surgeon.  Both  in  the  case  of 
voluntary  and  compulsory  retirement,  the  commissioner,  through  his 
deputy,  selects  three  surgeons  to  serve  as  a  board  of  survey  for  the  physi- 
cal examination  of  the  member.  The  findings  of  this  board  are  presented 
in  a  certificate  specifying  the  nature  and  extent  of  disability,  and  whether 
it  was  incurred  in  the  performance  of  duty  or  through  natural  causes 
without  misconduct  on  the  part  of  the  member.  This  certificate,  accom- 
panied by  an  extract  from  the  service  record  of  the  member,  is  sub- 
mitted to  the  pension  board  for  consideration. 

Composition  and  Duties  of  Pension  Board 

For  the  consideration  of  pension  applications  the  present  adminis- 
tration has  established  a  pension  board  composed  of  various  officials  of 
the  department.  During  the  year  1912  the  composition  of  the  board  was 
as  follows: 

James  E.  Dillon,  fourth  deputy  commissioner,  chairman. 

William  Kipp,   chief  clerk  of  the  department. 

Donald  Grant,  inspector  and  head  of  the  Captains'  Benevolent  As- 
sociation. 

Richard    E.    Enright,    lieutenant    and   head    of   the    Lieutenants' 
Benevolent  Association. 

John  T.  Nilon,  sergeant  and  head  of  the  Sergeants'  Benevolent 
Association. 

Peter  McEntee,  patrolman  and  head  of  the  Patrolmen's  Benevo- 
lent Association. 


42 

The  chairman  of  the  board,  who  is  the  representative  of  the  police 
commissioner  in  pension  matters,  is  not  required  to  devote  his  entire 
time  to  pension  administration.  His  work  in  this  connection,  as  ex- 
pressed by  him  on  the  witness  stand,  is  "one  of  the  minor  things"  in  his 
office.  The  duties  of  the  other  members  are  limited  to  the  attendance  at 
the  board  meetings  which  are  held  irregularly  from  one  to  four  times  a 
month. 

At  the  meetings  of  the  board  the  applications  and  other  papers  of 
members  are  submitted  for  scrutiny,  and  applicants  themselves  are  ques- 
tioned. In  the  case  of  widow  pensioners,  appearance  before  the  board  is 
not  required,  the  consideration  of  applications  being  based  on  the  report 
of  the  investigator.  The  powers  of  the  board  are  limited  to  the  submis- 
sion of  recommendations  to  the  police  commissioner.  The  decision  of  the 
board  recommending  the  action  to  be  taken  in  each  case  and  the  amount 
of  pension  to  be  granted,  is  noted  on  a  specially  provided  blank  accom- 
panying the  application.  The  police  commissioner  to  whom  these  recom- 
mendations are  submitted  approves  as  a  matter  of  course,  since  there  is 
little  else  that  he  can  do.  The  papers  of  the  applicants  bearing  the 
recommendations  of  the  board  are  turned  over  to  a  typist,  who  prepares 
from  them  the  minutes  of  the  board  meeting  which  are  later  signed  by 
the  chairman.  A  copy  of  the  minutes  of  the  board  meeting  held  on  Aug- 
ust 20,  1912,  is  to  be  found  in  the  appendix  (see  page  136).  The  pen- 
sion papers  are  finally  returned  to  the  filing  bureau  of  the  department 
where  they  are  placed  in  the  general  files. 


CHAPTER   V 
Handicaps  to  Good  Administration 

Results  op  Defects  in  Present  Laws 

The  pension  law  as  it  stands  to-day  is  a  patchwork — the  result  of  an 
unsatisfactory  and  unscientifically  constructed  measure,  originated  56 
years  ago.  Amended  and  extended  in  a  haphazard  way  from  year  to  year, 
it  now  stands  a  maze  of  highly  complicated  provisions  difficult  for  a 
newly  appointed  commissioner  to  comprehend,  and  on  account  of  conflict- 
ing interpretation  still  more  difficult  to  administer  equitably.  The  provi- 
sions in  force  are  set  forth  under  sections  351  to  357  and  section  366  of 
the  present  charter,  a  reading  of  which  is  necessary  only  to  obtain  an 
idea  of  their  vagueness.  For  the  purpose  of  showing  the  unsatisfactory 
results  of  the  operation  of  official  action  under  these  circumstances  a 
few  cases,  unique  in  the  history  of  pension  funds,  are  cited. 

Possibility  op  Drawing  Salary  and  Pension  at  Same  Time 

On  September  7,  1870,  one  Thomas  Mulvey  was  appointed  a  patrol- 
man in  the  old  city  of  New  York.  On  October  17,  1893,  after  having 
been  in  service  23  years,  he  retired  with  the  rank  of  sergeant  on  a  pension 
of  $1,000.  He  then  went  to  the  town  of  New  Utrecht,  where  he  became  a 
captain  of  police.  Soon  afterward  New  Utrecht  was  made  part  of  Brook- 
lyn, and  Mulvey  automatically  became  a  patrolman  of  the  Brooklyn  po- 
lice force.  When  Brooklyn  was  absorbed  in  the  Greater  City  of  New 
York,  Mulvey  once  more  became  a  member  of  the  New  York  police  force 
from  which  he  had  retired  four  years  before.  The  pension  of  $1,000  per 
annum  which  had  been  paid  to  him  while  he  served  on  the  police  force 
of  New  Utrecht  and  Brooklyn  was  continued,  and  Mulvey  during  the 
next  17  years  received  both  a  salary  and  a  pension  from  the  same  de- 
partment. In  1898  and  1901  the  department  made  efforts  to  stop  the 
pension  payments  while  Mulvey  was  in  the  active  service.  These  efforts 
proved  futile,  however,  as  the  pension  was  each  time  restored  to  him  by 
the  court.  In  the  meantime  Mulvey  was  promoted  to  the  rank  of  detec- 
tive sergeant  in  February,  1901,  which  paid  a  salary  of  $2,000  a  year; 
the  salary  and  pension  netting  him  an  annual  income  of  $3,000.  This 
was  increased  to  $3,250  when,  in  1909,  the  salary  of  lieutenants  who  were 
formerly  detective  sergeants  was  raised  from  $2,000  to  $2,250.  In  Janu- 
ary, 1913,  Lieutenant  Mulvey,  who  by  that  time  was  63  years  old,  was 
compulsorily  placed  on  the  retirement  list  at  half  his  salary,  or  $1,125 
per  annum,  while  his  former  pension  of  $1,000  was  discontinued.  Mul- 
vey, who  saw  no  reason  in  law  or  logic  why  he  should  not  draw  two  pen- 
sions at  the  same  time,  brought  his  case  before  the  court,  but  the  case 
was  decided  against  him  in  April  of  the  same  year — much  notoriety 
being  given  to  the  matter  in  the  press. 

Increases  in  Pensions  after  Being  Placed  on  Roll 

A  case  which  well  illustrates  the  results  of  administration  as  applied 
to  increases  is  that  of  Sergeant  Edgar  Davis.     In  1874,  after  an  inter- 

43 


44 

rupted  service  aggregating  about  17  years,  Davis  was  retired  on  $500  per 
annum.  He  drew  this  pension  for  11  years  and  2%  months,  receiving  a 
total  of  $5,605.  In  1885,  when  the  pensions  of  13  retired  sergeants  were 
increased  to  a  higher  scale,  Davis  began  to  draw  a  pension  of  $800  a  year, 
and  in  the  next  8  years  and  10y2  months  received  $7,103  from  the  fund. 
In  1894  a  law  was  passed x  which  amended  existing  retirement  provi- 
sions and  contained  the  following  clause:  "*  *  *  and  to  each  ser- 
geant and  detective  sergeant  of  police  heretofore  relieved  and  dismissed 
from  said  force  and  service  and  placed  on  the  roll  of  the  pension  fund, 
as  hereinabove  provided,  the  sum  of  one  thousand  dollars  per  annum 
thereafter."  This  amendment  raised  the  pensions  of  all  sergeants,  of 
whom  there  were  36,  including  Davis  on  the  roll  at  that  time,  to  $1,000 
per  year.  In  the  next  18  years  and  10  months  (to  March  25,  1913)  Davis 
drew  a  total  amount  of  $18,830.  The  absurdity  of  the  case  becomes  evi- 
dent when  it  is  considered  that  the  retired  sergeants  whose  pensions  were 
increased  to  $1,000  per  annum  had  never  received  a  compensation  of 
more  than  $1,600  when  in  active  service.  Under  such  conditions  it  was 
made  comparatively  easy  for  a  retired  officer  to  draw  in  the  aggregate 
more  money  in  pensions  than  in  active  pay. 

Pensions  in  Excess  of  Eegular  Pay 

To  summarize;  in  the  above  quoted  case  of  Sergeant  Davis,  this  po- 
lice officer,  during  his  entire  service  of  17  years,  could  not  have  drawn 
more  than  $25,000,  while  his  pensions  during  the  next  38  years  and  11 
months  aggregated  as  follows: 

11  years    2J^  months  at  $500  per  annum $5,605 

8  years  10J/£  months  at     800  per  annum 7,103 

18  years  10J^  months  at  1,000  per  annum 18,830 

Total $31,538 

The  total  of  $31,538  drawn  in  pensions  up  to  March  25,  1913  repre- 
sents a  probable  excess  over  the  sergeant's  active  pay  to  date  of  more 
than  $6,000.  To  this  amount  must  be  added  the  future  payments  as  the 
pensioner  continues  to  draw  his  pension,  which  again  at  his  death  may 
be  still  further  increased  by  the  amount  paid  to  his  widow  and  children 
(at  a  reduced  rate). 

Illustrations  of  the  same  kind  are  found  in  Table  XI  (see  appendix, 
page  122)  in  which  are  tabulated  the  details  of  the  retirement  of  ten  police 
officers.  This  table  shows  that  up  to  March  25,  1913,  these  ten  officers  had 
drawn  a  total  of  $321,363  in  pensions.  The  first  three  mentioned  ser- 
geants, Anderson,  Blake,  and  Davis,  had  drawn  more  in  pensions  than  in 
active  pay.  The  large  amounts  drawn  by  the  remaining  seven  officers  are 
mainly  due  to  the  high  pension  rates  (from  $1,000  to  $3,000  per  annum) 
received  by  the  officers.  Since  they  are  still  on  the  pension  roll,  they  may 
fall  into  the  same  category  as  the  first  three  as  time  goes  on. 

Confusion  Due  to  Ambiguous  Provisions 

The  above  enumerated  individual  instances,  while  not  exhausting  the 
available  illustrations,  serve  to  show  the  extraordinary  possibilities  of  the 
application  of  the  retirement  law.     The  ambiguity  of  its  provisions  has 


»L.,  1894,  Ch.  536,  amending  Sec.  307  of  Consol.  Act. 


45 

caused  a  considerable  amount  of  litigation.  In  one  instance  a  judge  x  in 
handing  down  a  pension  decision  made  the  following  statement  with  re- 
gard to  the  present  pension  law: 

"An  unscientific  and  bungling  statute  cannot  be  construed 
and  interpreted  by  the  same  strict  scientific  rules  as  a  consistent 
and  scientific  statute." 

Inadequate  Provisions  for  Administering  the  Fund 

The  charter  charges  the  police  department  with  the  interpretation 
and  administration  of  this  loosely  drawn  law  which  at  the  present  time 
involves  the  payment  of  more  than  $2,000,000  per  annum,  and  which  in 
the  future  will  rapidly  increase  this  demand  to  two  or  three  times  this 
amount.  The  police  department  is  organized  to  protect  persons  and 
property  from  violence,  and  should  be  expected  to  give  its  undivided 
attention  to  these  duties.  Under  the  circumstances  the  administration  of 
the  pension  fund  by  the  police  officers  can  only  result  in  neglect  and  con- 
fusion. But  those  who  are  in  direct  working  relations  with  policemen 
are  unfitted  for  such  work.  The  administration  of  pension  matters  is  an 
important  function,  and  should  not  be  laid  upon  officers  who,  if  they  at- 
tend to  their  main  duties,  must  treat  the  administration  of  the  fund  as  a 
side  issue,  not  requiring  any  special  attention.  Such  an  ex  officio  relation 
is  not  conducive  to  efficient  administration.  Even  though  the  fund  is  not 
used  for  questionable  purposes,  provisions  of  law  are  wrong  when  they 
impose  a  semi-judicial  function  on  those  who  are  interested  in  the  results. 

The  Head  of  the  Department  Not  a  Proper  Trustee  for  the  Fund 

The  head  of  an  operative  department  is  not  a  proper  trustee  for  a 
pension  fund,  especially  when  its  administration  admits  of  the  exercise  of 
official  discretion.  The  wide  scope  of  his  departmental  duties  does  not 
permit  him  to  give  more  than  the  most  casual  attention  to  the  pension 
administration.  He  must,  therefore,  delegate  this  important  work  to  some 
subordinate.  But  there  is  the  more  potent  reason,  viz. :  because  the  head 
of  the  department  is  responsible  for  operative  results,  and  the  temptation 
is  ever  present  to  utilize  the  pension  fund  for  current  administrative  pur- 
poses. When  the  head  of  the  department,  as  trustee,  is  given  authority 
to  decide  when  men  shall  be  retired,  he  will  in  all  probability  elect  to 
jeopardize  the  fund  rather  than  assume  responsibility  for  continuing  a 
man  in  service  who  is  persona  non  grata. 

Attempts  to  Cure  Last-named  Defect 

For  the  purpose  of  overcoming  in  part  this  last-named  defect  (lack  of 
time  for  attention  to  details  and  official  interestedness  in  results) ,  the  pen- 
sion board  was  created  by  the  present  police  commissioner  to  consider  and 
recommend  to  him  the  amounts  of  pensions  to  be  granted  to  retired  mem- 
bers of  the  department  and  to  widows  and  orphans.  He  has  thereby 
thought  to  delegate  his  judicial  functions.  But  the  composition  of  this 
board  of  officers  is  also  unfortunate.  The  pension  board  is  interested  in  re- 
sults ;  besides,  they  are  also  the  heads  of  various  private  benevolent  associa- 


M.  of  Reynolds  v.  Bingham,  126  App.  Div.  289,  291  (1908). 


46 

tions  of  the  department,  whose  members  are  interested  parties.  This  member- 
ship points  to  the  possibility  that  the  recommendations  may  favor  persons 
who  are  also  members  of  the  particular  associations  in  which  the  officers  are 
interested.  The  composition  of  the  advisory  pension  board  is  defective  in 
another  particular,  viz. :  in  making  recommendations  they  are  under  no 
necessity  or  responsibility  for  considering  the  cost  which  is  entailed 
through  their  recommendations. 

An  Interested  Advisory  Board 

"When  Fourth  Deputy  Commissioner  Dillon  was  questioned  on  the 
witness  stand  with  regard  to  the  attitude  of  the  pension  board,  of  which 
he  was  president,  his  replies  made  it  clear  that  the  question  of  cost  was 
never  considered.  The  following  questions  by  Mr.  Buckner,  chief  coun- 
sel of  the  Curran  Committee,  and  answers  by  Deputy  Commissioner 
Dillon  *  are  interesting  in  this  respect : 

Q.    You  were  not  interested  in  the  saving  of  money? 
A.     I  was  not  interested  in  the  fund  except  just  in  the  way 
as  I  have  explained  to  you — only  there  as  a  pension  board. 

Q.    What  you  call  a  merciful  administration? 
A.    "We  were  there  as  a  pension  board  to. grant  pensions  where 
pensions  were  expected  to  be  granted  under  the  law. 

Q.  I  see.  Well,  you  piled  up  more  than  any  other  adminis- 
tration ? 

A.  Very  pleased.  I  hope  the  next  administration  will  con- 
tinue the  good  work. 

In  the  light  of  such  an  attitude  toward  the  question  of  cost  the  re- 
cent large  increases  in  the  annual  pension  payments  become  more  in- 
telligible. Since  the  pension  board's  recommendations  to  the  commis- 
sioner are  advisory  only,  and  since  the  commissioner,  as  the  officer  re- 
sponsible for  the  condition  of  the  fund,  has  no  time  intelligently  to  pass 
upon  the  merits  or  demerits  of  the  recommendations  submitted,  he  in- 
variably puts  them  into  effect.  Bearing  on  this  point  the  answers  made 
on  the  witness  stand  by  Patrolman  Healy,  pension  investigator,  are  sig- 
nificant 2 : 

Q.     Did  you  use  to  see  the  recommendations  of  this  board 
after  the  meeting  was  over? 
A.    Yes,  sir. 

Q.     And  do  you  know  whether  their  recommendations  were 
generally  followed  by  the  police  commissioner? 
A.    Usually. 

Q.     Do  you  know  any  cases  where  they  were  not? 
A.     I   can't  recall   any   case  that  the   recommendations   was 
overruled. 


1  Page  4338,  minutes  of  the  meeting  of  the  Committee,  March  26,  1913. 
»  Page  4325,  minutes  of  the  meeting  of  the  Committee,  March  26,  1913. 


47 

Q.     So   that  your   "usually"   might   almost   be   extended   to 
"universally,"  might  it  not,  and  still  be  within  the  facts? 
A.     Yes,  sir. 

A  Partisan  Pension  Investigator 

Although  the  members  of  the  force  to  be  retired  are  brought  before 
the  board  and  questioned,  the  recommendations  relating  to  widows'  and 
children's  pensions  are  based  upon  the  reports  of  the  pension  investi- 
gator, who  is  a  patrolman  on  the  force.  It  is,  therefore,  reasonable  to 
assume  that  a  great  deal  depends  on  the  manner  in  which  this  investi- 
gator presents  his  reports.  And  since  the  investigator,  because  of  his  posi- 
tion on  the  force,  is  a  partisan,  it  is  reasonable  to  assume  that  his  findings 
will  be  more  or  less  favorable  to  the  applicant  while  the  character  of  his 
findings  will  be  more  or  less  colored  by  his  personal  likes  and  dislikes. 

Lack  of  Complete  and  Accurate  Pension  Records 

To  have  a  pension  board  and  investigators  composed  of  officers  who, 
because  of  the  absence  of  personal  relations  with  prospective  beneficiaries, 
would  be  able  to  decide  upon  pension  applications  without  bias,  thereby 
insuring  fair  and  impartial  treatment  to  all,  is  not  the  only  considera- 
tion that  enters  into  the  establishment  of  an  efficient  pension  administra- 
tion. The  necessity  of  a  proper  record  system  for  the  accumulation  of 
data  bearing  upon  mortality  experience,  rate  of  disability,  rate  of  with- 
drawals from  active  service,  etc.,  is  of  the  utmost  importance.  '  It  is 
only  by  means  of  the  data  so  recorded  and  collected  that  the  present  and 
prospective  obligations  of  the  fund  can  be  ascertained  and  the  actual  cost 
of  the  pensioning  of  policemen  determined.  It  is  only  by  such  means  that 
the  requirements  of  law  for  an  annual  report  setting  forth  the  condition 
of  the  fund  can  be  fully  complied  with. 

Need  for  Exact  Information  Ignored  by  Commissioner 

The  importance  of  a  proper  record  system  has  been  entirely  ignored 
by  police  commissioners.  The  handling  of  moneys  that  come  into  the 
fund  as  well  as  the  paying  out  of  pensions  when  they  fall  due,  has  been 
attended  to  by  the  bookkeeper's  department,  but  the  necessity  for  find- 
ing out  the  extent  of  obligations  accumulated  by  the  fund  has  never 
been  considered.  As  in  the  case  of  the  interpretation  of  the  pension  law 
by  the  pension  board,  none  of  its  members  are  required  to  devote  their 
entire  time  to  such  duties,  so  in  the  case  of  the  financial  administration 
of  the  fund  neither  the  bookkeeper  nor  any  of  his  clerks  are  giving  their 
attention  exclusively  to  the  recording  and  accumulation  of  pension  sta- 
tistics. 

Estimate  of  Liabilities  Impossible  without  Exact  Information 

The  principles  involved  in  the  financial  aspects  of  a  pension  fund 
are  much  like  those  which  enter  into  the  business  of  insurance  companies. 
Since  the  solvency  of  such  companies  involves  the  welfare  of  so  many  in- 
dividuals, the  laws  are  very  strict  in  their  requirements  as  to  the  amount 
of  reserve  to  be  constantly  on  hand  to  secure  the  future  payment  of  in- 


48 

curred  obligations.  In  view  of  this  attitude  of  the  law  toward  private 
insurance  companies,  the  utter  disregard  of  elementary  business  princi- 
ples in  the  management  of  pension  funds,  which  after  all  are  funda- 
mentally governmental  insurance  enterprises,  is  astonishing.  In  the  case 
of  the  police  pension  fund,  not  only  were  its  liabilities  unknown  to  the 
officers  connected  with  its  administration,  but  the  meaning  of  the  term 
liability  has  not  been  understood.  It  is  obvious  that  the  amount  of 
liability  incurred  by  the  granting  of  a  pension  can  only  be  ascertained 
when  it  is  known  how  long  the  beneficiary  is  expected  to  draw  the  pen- 
sion. The  probable  length  of  the  pension  term  is  the  probable  length  of 
the  pensioner's  life.  The  estimate  of  this  probability  depends  on  full 
information  as  to  age  and  physical  condition  at  the  time  of  retirement, 
and  experience  as  to  mortality  among  policemen  previously  retired.  The 
absence  on  the  pension  records  of  the  department  of  complete  data  giving 
ages  and  the  absence  of  vital  and  mortality  statistics  naturally  makes  it 
impossible  for  the  liabilities  of  the  fund  to  be  accurately  determined. 

Statements  in  Annual  Eeport  Are  Misleading 

Each  annual  report  of  the  pension  fund,  however,  sets  forth  the 
"yearly  increase  of  liability,"  this  latter  term  being  applied  to  the  re- 
sult of  certain  computations  which  are  of  little  or  no  value  in  the  deter- 
mination of  real  liabilities  as  the  term  is  commonly  understood.  These 
amounts,  which  have  been  published  by  the  pension  administration  as  in- 
creases of  "liabilities"  during  the  years  1901  to  1912,  are  as  follows: 


Year 

Amount  of 
Increase 

Amount  of 
Decrease 

Increase  of 
Liability 

1901 

$92,647.00 
123,613.00 
170,930.00 
135,410.40 
245,668.00 
230,503.48 
192,667.30 
129,927.30 
166,070.00 
183,928.00 
321,616.40 
255,874.00 

$42,760.00 
57,460.00 
50,895.00 
55,503.00 
86,424.00 

126,384.00 
92,602.00 

113,325.00 
96,423.00 
57,351.00 
87,661.00 

106,953.00 

$49,887.00 

1902 

66,153.00 

1903 

119,945.00 

1904 

79,907.40 

1905 

159,244.00 

1906 

104,119.48 

1907 

100,065.00 

1908 

16,602.30 

1909 

69,647.00 

1910 

126,577.00 

1911 

233,955.40 

1912 

148,921.00 

The  amounts  entered  in  the  column  headed  "Amount  of  Increase" 
represent  the  addition  of  the  annual  pensions  granted  or  increased  dur- 
ing the  year  indicated,  while  the  figures  in  the  next  column  headed 
"Amount  of  Decrease"  were  obtained  by  adding  the  annual  pensions 
which  were  discontinued  during  the  same  year  because  of  deaths  or  revo- 
cations. The  amounts  set  forth  in  the  last  column  headed  "Increase  of 
Liability ' '  represent  the  excess  of  the  annual  increase  over  the  annual 
decrease.  It  is  obvious  that  these  amounts  do  not  give  any  idea  of  the 
real  increase  of  liabilities  of  the  fund,  which  of  necessity  must  take 
into  account  the  period  for  which  such  pensions  are  to  continue,  and, 
therefore,  the  presentation  of  such  information  in  the  annual  reports  of 


49 

the  pension  fund  is  misleading.  It  shows  simply  the  increased  amount 
which  must  be  set  aside  for  the  year's  pensions  without  regard  to  the 
future  years. 

Inaccuracies  in  Such  Eecords  as  Are  Kept 

The  lack  of  thoroughness  in  the  administration  of  the  pension  fund 
so  far  as  the  bookkeeping  is  concerned,  is  also  illustrated  by  the  unre- 
liable and  incorrect  data  included  in  the  annual  reports  of  the  fund, 
which  are  prepared  by  the  bookkeeper's  office  of  the  department.  During 
the  present  investigation  efforts  were  made  to  locate  a  number  of  pen- 
sioners at  their  home  addresses  which  are  furnished  in  the  annual  report 
for  1912.  It  was  found  that  a  great  number  of  those  addresses  were  in- 
correct, obsolete,  and  in  some  cases  fictitious.  For  instance,  the  addresses 
of  Captain  Robert  O.  Webb,  and  Lieutenant  Henry  Hahn  indicated  as 
449  West  123d  Street  and  158  East  83d  Street,  respectively,  were  found 
to  be  fictitious.  At  the  first  mentioned  address  it  was  stated  that  no  per- 
son by  the  name  of  Webb  had  ever  lived  there,  and  in  the  second  instance 
it  was  ascertained  that  Lieutenant  Henry  Hahn's  permanent  address  is 
now,  and  for  a  number  of  years  has  been,  2  James  Slip.  WhW  inquiries 
were  made  about  pensioners  living  out  of  town  it  was  discovered  that 
some  of  the  addresses  as  given  in  the  annual  report  were  obviously  wrong, 
as,  for  instance,  in  the  following  cases: 

Howard,  Jennie  C. — Does  not  receive  mail  at  recorded  address. 

McDonald,    James — Works   in   New   York   and   recorded    ad- 
dress is  too  far  to  commute  from. 

Sheldon,   Samuel  Gr. — Works  in  New  York  and  recorded  ad- 
dress is  in  Florida. 

In  the  following  instances  the  addresses  were  found  to  be  obsolete: 

Burns,  Loretta  Lyman,  George 

Edwards,  F.  W.  Mairs,  James 

Graham,  Elizabeth  C.  McConnell,  Matthew 

Huntington,  John  W.  Skidmore,  George  M. 

Jacoby,  Henry  F.  Walsh,  Bartholomew 

Webster,  Frank  A. 

The  publishing  of  addresses  of  pensioners  when  they  are  incorrect 
and  obsolete  is  of  no  value.  It  is  not  only  a  waste  of  public  money  but 
also  results  in  loss  of  official  time. 

Inconsistencies  in  Data  Published 

Other  information  presented  in  the  annual  report  is  just  as  unre- 
liable as  the  above  mentioned  addresses.  More  than  150  pages  are  de- 
voted to  names,  addresses,  and  amounts  relating  to  present  and  past  pen- 
sioners. The  arrangement  of  this  detailed  information  is  made  without 
any  classification  except  that  of  alphabetical  order  of  names  and  by  the 
first  letter  of  the  surname  only.  On  one  of  the  pages  is  given  what  pur- 
ports to  be  a  recapitulation  of  the  detailed  information.  In  the  report 
for  1912  the  recapitulation  presented  on  page  177  is  not  supported  by 


50 


the  details  set  forth  in  the  same  publication, 
tained  discrepancies  is  presented  below: 


An  illustration  of  ascer- 


As  Reported 
by  Department 
Recapitulation 

As  Ascertained  from 
Detailed  Information 
in  the  Same  Report 

Pensions  Granted  in  1912: 

Officers  pensioned 

246 

1 

157 

161 

1 
2 

16  * 

135 

33 

3 

4 

29 

0 

26 

2,439 

1,341 

7 

10 

106 

287      pp.   178-186 

2      pp.   178-186 

156      pp.   178-186 

202      pp.   178-186 

0 

Officers  increased 

Widows  pensioned 

Widows  increased 

Dependent  parent  increased 

Matrons 

2      pp.   181,185 
16 x    p.     192 

144      pp.     36-199 

40 2    pp.     36-199 

5       pp.     36-199 

4  pp.     36-199 
29 3    pp.  207-208 

1       p.      130 
25 3    pp.  207-208 

2,447      pp.     36-199 
1,347      pp.     36-199 

5  pp.     36-199 
9      pp.     36-199 

Children  pensioned  1 

Pensions  Terminated  in  1912: 

Officers  deceased 

Widows  deceased 

Widows'  pensions  revoked 

Widows  married 

Children — age  limit 

Officer'6  pension  rescinded 

Children's  pensions  revoked  ' 

Number  of  Beneficiaries  Now  Are  (Dec.  31,  '12) : 
Officers 

Widows 

Dependent  parents 

Matrons 

Children 

68  >    pp.     36-199 

1  Children  of  one  family  are  here  considered  separately;  elsewhere  they  are  grouped  as  one. 

»  Thirty-four,  according  to  pp.  205-206. 

»  Fourteen,  according  to  pp.  36-199,  where  children  of  one  family  are  considered  as  one. 

Lack  of  Provision  for  Continuity  of  Policy 

One  of  the  most  important  features  to  be  provided  for  in  establish- 
ing a  pension  system  is  a  means  for  maintaining  continuity  of  policy,  so 
that  there  may  be  uniformity  in  the  application  of  the  system  in  indi- 
vidual cases.  It  is  impossible  to  word  a  pension  law  in  such  a  manner 
as  to  insure  uniformity  in  its  interpretation  by  non-continuous  adminis- 
tration, even  if  no  discretionary  powers  are  conferred  by  its  provisions. 
The  operation  of  the  present  system,  moreover,  depends  largely  on  the 
extensive  exercise  of  executive  discretion.  It  would  be  difficult,  if  not 
impossible,  to  find  two  individual  administrators,  one  succeeding  the 
other,  who  would  take  exactly  the  same  view  in  interpreting  the  original 
intent  of  the  law.  This  is  good  reason  for  the  creation  of  an  impartial, 
disinterested  supervisory  board  which  will  be  continuous — though  not  for 
establishing  a  partisan  and  self-interested  board  with  an  interested  ad- 
visor such  as  now  exists. 


Frequency  in  Change  of  Commissioners 

When  the  frequency  of  change  in  administration  is  considered,  the 
significance  of  the  foregoing  observations  will  be  realized.  Since  1901, 
during  a  period  of  13  years,  no  less  than  eight  single  commissioners  have 


51 


succeeded  each  other  in  the  administration  of  the  department, 
terms  of  office  were  as  follows: 


Their 


Commissioner 


Duration  of  Term 


Feb. 

22, 

Jan. 

1, 

Jan. 

1, 

Jan. 

1, 

Jan. 

1, 

July 

1, 

Oct. 

20, 

May  23, 

Dates 


Murphy . 
Partridge 
Greene.  . 
McAdoo. 
Bingham . 
Baker.  .  . 
Cropsey . 
Waldo. . . 


103^  months 

1  year 

1  year 

2  years 

3  years,  6  months. . . . 

1  year,  3  Y%  months .  . 
7  months 

2  years,  7  months .  .  . 


1901 
1902 
1903 
1904 
1906 
1909 
1910 
1911 


to  Jan. 
to  Jan. 
to  Jan. 
to  Jan. 
to  July 
to  Oct. 
to  May 
to  Dec. 


1,  1902 

1,  1903 

1,  1904 

1,  1906 

1,  1909 

20,  1910 

23,  1911 

31, 1913 


From  the  above  statement  it  becomes  evident  that,  since  1902  at 
least,  the  retirement  law  has  been  subject  to  frequent  differences  in  in- 
terpretation and  application,  the  administration  of  the  fund  never  re- 
maining in  the  same  hands  successively  for  more  than  three  years  and 
six  months — even  the  pension  board  being  absent  from  the  scheme  of 
management  before  the  last  term.  For  the  purpose  of  showing  the  re- 
sults of  the  interpretation  of  the  pension  law  by  the  various  police  ad- 
ministrations, a  tabulation  was  undertaken  at  the  pension  bureau  of  the 
department.  The  only  source  of  information  which  could  be  used  in  this 
connection  was  the  card  system  maintained  in  the  bookkeeper's  office. 
As  pointed  out  in  Chapter  IV  of  this  report  (see  page  39),  however, 
these  records  were  incomplete,  especially  with  regard  to  earlier  retire- 
ments. These  limitations,  therefore,  should  be  kept  in  mind  when  ex- 
amining Tables  XII  and  XIII  (see  Appendix,  pages  124  and  126).  The 
data  omitted  from  the  tables  tend  to  make  the  results  presented  an  under- 
statement of  the  facts  in  point,  since  they  show  during  the  earlier  admin- 
istrations fewer  changes  in  pensions  than  actually  took  place. 

Differences  in  Interpretation  and  Application  of  Law 

Table  XII  is  illustrative  of  the  fact  that  the  interpretation  of  the 
pension  law  is  subject  to  changes  as  the  administration  of  the  fund  passes 
into  different  hands.  The  original  retirements  as  well  as  amendments 
increase  or  decrease  in  number,  according  to  the  viewpoint  taken  by  each 
succeeding  police  commissioner  and  the  duration  of  his  term  of  office. 
The  most  pronounced  difference  in  the  application  of  the  pension  law  is 
illustrated  by  the  comparison  of  pension  decisions  during  the  administra-' 
tion  of  the  fund  by  Commissioners  Bingham  and  Waldo. 

The  tabulation  takes  in  the  entire  term  of  42  months  of  Commis- 
sioner Bingham's  administration,  and  only  21  months  (May  23,  1911- 
February,  1913)  of  the  trusteeship  of  Commissioner  Waldo.  The  pre- 
sented data  shows  at  a  glance  that  the  present  administration  is  a 
liberal  one,  not  only  as  compared  with  the  administration  of  Bingham 
but  all  other  commissioners.  During  the  42  months  of  Commissioner 
Bingham's  administration  833  policemen  were  retired,  while  Commis- 
sioner Waldo  in  21  months,  or  half  the  time,  placed  609  members  on  the 
pension  list.  During  the  shorter  period  of  time  20  pensions  were  in- 
creased as  compared  with  12  increases  during  Commissioner  Bingham's 
administration.     In  the  case  of  widow  pensioners,  the  present  commis- 


52 


sioner  has  surpassed  all  records  set  by  his  predecessors, 
ing  extract  from  Table  XII : 


Note  the  follow- 


Widow  pensions  granted . . 
Widow  pensions  restored. . 
Widow  pensions  increased , 

Total 

Monthly  Average 

Widow  pensions  decreased 
Widow  pensions  revoked. . 


Administrations 


McAdoo 

(24  Months) 


214 

1 

110 


325 

1 
1 


Bingham 
(42  Months) 


239 

3 

71 


313 

m 

90 

74 


Waldo 
(21  Months) 


260 

3 

347 


610 
29 


12 


Elements  of  Uncertainty  Undesirable 

Table  XIII  shows  the  lack  of  stability  in  pensions,  a  great  number 
of  which  are  subject  to  amendments  in  the  discretion  of  the  frequently 
changing  police  administrations.  The  pensions  of  members  who  have 
served  more  than  20  years  are  not  subject  to  amendment.  The  majority 
retire  after  completing  the  indicated  term,  and  their  pensions  cannot  be 
revoked  or  amended.  This  partly  explains  the  fact  that  only  134  of  the 
4,260  pensions  of  this  class,  or  3%  of  the  total,  were  changed.  The  great 
majority  of  these  amendments  were  authorized  by  law  which  on  several 
occasions  automatically  increased  the  pensions  of  men  already  retired. 
In  the  case  of  pensioned  dependents  of  the  members  of  the  force,  the 
discretionary  powers  of  the  administration  are  complete  except  as  to  the 
maximum  amounts  to  be  granted  in  certain  cases.  Because  of  this  fact 
these  pensions  present  the  least  permanent  provision  under  the  pension 
system,  as  is  well  illustrated  by  the  fact  that,  of  every  100  pensions 
granted  to  widows  and  dependent  parents,  33  are  either  revoked,  de- 
creased, or  increased  in  amount.  The  children's  pensions  having  a  shorter 
duration  because  of  their  termination  upon  the  attainment  of  age  18,  did 
not  present  as  frequent  demands  for  the  exercise  of  the  discretionary 
powers  of  the  commissioner.  Consequently  only  18%  of  their  total  num- 
ber underwent  any  kind  of  a  change. 

The  preceding  pages  contain  a  presentation  of  the  general  defects 
of  the  present  pension  system  caused  by  the  personal  interpretation  of  the 
pension  law  by  the  department,  and  the  inefficient  and  totally  ignorant 
manner  in  which  the  finances  of  the  fund  and  the  pension  records  and 
statistics  are  handled.  Specific  defects  of  the  law  itself  and  the  present 
features  of  the  plan  are  discussed  in  chapters  dealing  with: 

1.  Service  pensions  or  retirement  of  members  of  the  force  in  con- 

sideration of  length  of  service  (Chapter  VIII,  page  69). 

2.  Disability  pensions  or  retirement  of  members  of  the  force  be- 

cause of  disability  making  them  unfit  for  police  duty  (Chap- 
ter IX,  page  79). 

3.  Pensions  to  the  dependents  of  the  members  of  the  force   (Chap- 

ter X,  page  99 ) . 


CHAPTER   VI 

Liabilities  Incurred  and  the  Method  op  Meeting  Them 

The  pension  plan  adopted  by  the  City  of  New  York  for  policemen 
provides  for  the  granting  of  annuities  to  members  of  the  force  who  re- 
tire from  the  service  because  of  impaired  health  or  after  serving  for  a 
certain  number  of  years.  A  life  annuity,  when  granted,  is  in  the  nature 
of  a  promise  on  the  part  of  the  grantor  to  make  certain  specified  pay- 
ments each  year  to  the  grantee,  as  beneficiary  until  he  dies,  or  till  the 
happening  of  a  certain  other  event.  To  provide  for  such  payments  one 
or  another  of  the  following  methods  may  be  employed: 

1.  A  "reserve  plan"  of  funding  all   liabilities  incurred   may  be 

adopted.1 

2.  Matured  obligations  may  be  met  at  maturity  without  any  pro- 

vision being  made  for  funding  liabilities  incurred,  i.  e.,  a 
"cash  disbursement  plan"  may  be  adopted  which  requires 
only  that  the  necessary  payments  be  currently  provided  for. 

Elements  Involved  in  Appraisement 

Either  of  the  foregoing  methods  may  be  employed,  whatever  means 
may  be  used  for  obtaining  the  resources  required  for  meeting  obliga- 
tions, or  whatever  may  be  the  conditions  attached  to  the  rights  of  par- 
ties in  the  funds  and  to  the  disbursements.  It  seems  probable  that  at 
the  time  the  police  pension  fund  was  founded,  the  theory  was  that  it 
would  operate  on  a  "reserve  plan."  The  founders  and  subsequent  build- 
ers of  the  fund,  however,  took  none  of  the  steps  necessary  to  determine 
what  foundation  would  be  required  to  support  the  superstructure  obli- 
gations incurred — what  would  be  necessary  to  enable  it  to  meet  the  vari- 
ous kinds  of  financial  strain  that  would  be  put  upon  the  fund.  The  re- 
sult has  been  that,  without  any  change  in  conception,  a  change  of  prac- 
tice has  taken  place  which  has  in  later  years  caused  it  to  operate  practi- 
cally on  the  "cash  disbursement  basis." 

As  this  study  is  the  first  attempt  to  obtain  an  appraisement  of  the 
fund's  present  assets  and  ultimate  revenues  and  its  present  as  well  as 
its  ultimate  liabilities,  it  seems  desirable  to  consider  what  is  involved  in 
each.  To  reach  a  conclusion  with  respect  to  either,  it  is  necessary  to  de- 
termine with  respect  to  each  beneficiary: 

1.  The  nature  and  extent  of  the  annuity,  which  he  may  draw  on  re- 
tirement for  service  and  the  average  future  lifetime  at  date 
of  retirement. 


1  This  necessitates  putting  amounts  aside  each  year  during  active  service,  so  that  when  retirement  comes 
a  fund  is  on  hand  which  is  sufficient,  with  interest  thereon,  to  meet  the  pension  payments  as  they  become  due. 
The  amounts^  so  put  aside  may,  of  course,  be  contributed  by  the  active  force,  or  the  total  of  the  yearly  individ- 
ual contributions  required  may  be  paid  into  the  fund  by  the  City  each  year. 

53 


54 

2.  Rate  of  disability  before  reaching  the  age  of  service  retirement, 

annuity  to  be  granted  on  disablement,  and  average  future  life- 
time if  disabled. 

3.  Probability  of  leaving  the  service  before  retirement  age,  etc. 

The  experience  of  the  force,  active  and  retired,  in  the  past,  should  be 
used  to  indicate  what  the  future  experience  will  be.  In  addition,  for  the 
purpose  of  appraisement  under  the  "reserve  plan,"  it  is  also  necessary 
to  determine  the  rate  of  interest  which  can  be  earned  on  the  accumulations 
of  the  fund. 

In  the  appraisement  of  the  police  pension  fund  of  the  City  of  New 
York  there  are  other  elements  to  be  considered,  due  to  the  options  of 
prospective  annuitants  and  the  discretion  of  officers  provided  for  in  the 
plan,  but  in  any  case  the  above  described  data  for  individuals  should  be 
accurately  kept  in  so  far  as  they  relate  to  the  past  and  can  be  recorded. 
The  factors  used  in  calculation  must  be  made  available  in  tables  that 
afford  a  scientific  presentation  of  the  average  experience  of  a  large  num- 
ber of  entrants  and  for  each  class  of  beneficiaries,  since  calculations  based 
on  individual  cases  may  prove  to  be  wide  of  the  mark.  By  consider- 
ing the  average  experience  of  the  members  of  the  active  service  and  the 
annuitants  as  applied  to  retirement,  death,  etc.,  and  by  assuming  that 
the  experience  of  the  period  used  is  a  good  index  of  what  it  will  be  in  the 
future,  the  liability  for  prospective  pension  payments  can  be  calculated 
and  an  adequate  "reserve"  set  up  as  fast  as  liabilities  are  incurred;  or 
if  the  "reserve  plan"  is  not  adopted,  adequate  provision  can  be  made  for 
meeting  pension  payments,  as  they  mature  by  "cash  disbursement." 

Present  Condition  of  Fund  When  Appraised  on  Theory  op  "Reserve 
Plan" 

Since  the  pension  fund  has  almost  no  cash  assets  available  at  present 
(only  $97,455  at  the  time  of  making  the  estimate),  an  appraisement  of 
the  fund  consists  only  in  ascertaining  its  liabilities  and  determining  the 
exact  extent  of  its  insolvency  if  considered  on  the  "reserve  basis." 

In  gauging  the  liabilities  of  the  fund,  the  claims  of  two  groups  of 
persons  have  been  separately  considered  in  this  appraisement: 

1.  The  amounts  which  must  be  paid  to  persons  who  were  on  the 

pension  roll  at  the  time  of  the  valuation  (those  whose  claims 
are  already  fixed  and  determined  by  officers  acting  under 
authority  of  law). 

2.  The  amounts  which  it  may  be  assumed  have  accrued  to  the  pres- 

ent active  force  as  a  part  of  the  inducement  for  them  to  enter 
and  remain  in  the  service  of  the  city. 

Assuming  the  original  intent  or  the  present  policy  to  be  to  operate 
on  a  "reserve  plan,"  the  amount  determined  by  this  appraisement  as  the 
present  liability  to  persons  now  on  the  pension  rolls  is  the  sum  which, 
if  invested  at  interest  (4%  being  taken  for  this  calculation)  on  the  date 
of  valuation,  would  be  sufficient  to  enable  the  fund  to  continue  to  pay  all 
maturing  obligations,  the  pensions  fixed  and  determined  by  officers  under 
authority  of  law  until  the  last  present  pensioner  has  died.     The  liability 


55 

to  the  present  active  force,  as  determined  by  appraisement  on  this  basis, 
is  an  amount  which,  if  cumulated  at  the  same  rate  and  invested  at  4%, 
would  be  sufficient  to  pay  pensions  for  life  to  the  members  after  they 
shall  have  retired.  The  amounts  of  the  two  kinds  of  liabilities  are  set. 
forth  in  the  valuation  balance  sheet  of  the  actuarial  report  (see  page  209) 
as  follows: 

Liability  to  present  pensioners $20,138,817 

Liability  to  present  active  force  for  future  pensions 48,292,652 

Total  liabilities $68,431,469 

Contributions  to  the  Fund  by  Prospective  Beneficiaries 
The  only  means  provided  for  meeting  these  liabilities  are: 

1.  Contributions  to  the  fund  by  prospective  beneficiaries. 

2.  Appropriation  of  municipal  revenues — special  or  general  appro- 

priations. 

The  ''miscellaneous  revenues"  which  inure  to  the  benefit  of  the 
fund  are  in  the  nature  of  permanent  or  continuous  appropriations  of 
city  revenues,  and  therefore  are  to  be  considered  in  the  same  category 
with  annual  appropriations  to  be  met  by  taxation.  The  amounts  derived 
from  the  "miscellaneous  revenues"  during  the  past  twelve  years  (1901- 
1912)  and  shown  in  Table  V  (page  116),  form  a  very  uncertain  income, 
the  future  increase  or  decrease  of  which  it  is  next  to  impossible  to  de- 
termine with  any  degree  of  accuracy.  The  only  part  of  the  revenues  of 
the  fund  which  is  contributed  by  prospective  annuitants  is  the  2%  deduc- 
tions from  the  payrolls.  The  present  value  of  the  future  2%  contribu- 
tions of  the  present  active  force  during  the  remaining  term  of  service  of 
its  members  before  their  retirement  has  been  estimated  to  be  $3,076,647. 
Adding  to  tljis  amount  the  cash  on  hand  at  the  date  of  valuation,  $97,455, 
the  total  assets  of  the  fund  are  determined  as  $3,174,102. 

Net  Present   Liabilities 

Setting  against  these  assets  the  total  amount  of  liabilities,  $68,- 
431,469,  the  deficiency  of  the  fund  is  found  to  represent  a  total  of  $65,- 
257,367.  This  is  the  amount  which  should  have  been  provided  from  one 
source  or  another  on  the  date  of  valuation,  February  1,  1913 ;  the  amount 
which,  in  addition  to  the  cash  on  hand  and  the  future  contributions  of 
the  present  active  force,  should  have  been  in  the  fund  and  invested  at  4% 
interest,  if  the  fund  had  been  financed  on  the  theory  that  provision  is  to 
be  made  each  year  for  meeting  its  pro  rata  of  the  liabilities  incurred 
during  the  period  of  the  plan's  operation.  The  above  calculation  does 
not  take  into  consideration  the  prospective  obligations  to  future  entrants 
by  a  continuation  of  the  plan.  The  funding  requirements  for  the  accumu- 
lation of  a  reserve  to  meet  future  obligations  to  those  who  shall  come  into 
the  service  when  members  of  the  present  force  have  retired,  are  made  the 
subject  of  a  separate  calculation  (pages  64-68). 

Future  Payments  to  Pensioners  and  Present  Force  on  "Cash  Dis- 
bursement Plan" 
The  fund,   however,   as  has  been   already   explained,   has  not   been 
operated  along  lines  recognizing  the  need  for  the  accumulation  of  a  re- 


56 

serve  and  the  investment  of  the  same  at  compound  interest.  Although 
not  definitely  recognizing  an  obligation  on  the  part  of  the  city  to  meet 
deficiencies  until  1892,  the  plan  has,  during  the  last  30  years,  provided 
only  about  enough  cash  to  meet  matured  claims.  Under  such  circum- 
stances accrued  liabilities  have  been  ignored,  and  in  effect  the  "reserve 
plan"  has  been  abandoned.  An  estimate,  therefore,  has  been  made  of 
the  amount  of  cash  which  the  fund  must  disburse  in  meeting  future  obli- 
gations as  they  mature.  In  this  there  can  be  no  assumption  of  an  in- 
vested reserve;  there  will  be  no  investment  income.  On  the  "cash  dis- 
bursement basis"  the  valuation  balance  sheet  (see  page  209,  actuarial  re- 
port) gives  another  set  of  figures,  based  on  the  assumption  that  the  pres- 
ent method — which  does  not  include  the  compound  interest  factor — would 
be  continued.  Assuming  the  continuation  of  the  2%  contribution  by 
the  active  members  of  the  force,  the  total  amount  which  the  city  must  ulti- 
mately contribute  in  the  form  of  appropriations  of  miscellaneous  reve- 
nues and  appropriations  of  taxes  for  the  payment  of  pensions  to  the  pres- 
ent pensioners  and  to  the  members  of  the  now  active  force  after  they  shall 
have  retired,  is  $144,491,600.  The  difference  between  the  amount  of  ap- 
propriations required  by  the  "reserve"  plan  ($65,257,367)  and  the  "cash 
disbursement"  plan  is  $79,234,233,  which  represents  the  investment  income 
which  would  accrue  to  the  fund  if  an  adequate  "reserve"  were  set  aside. 

Payments  to  Future  Entrants 

The  above  calculation  does  not  tell  the  whole  story  of  future  fund- 
ing needs.  To  maintain  the  force,  vacancies  must  be  filled.  For  the  pur- 
pose of  this  estimate  it  is  assumed  that  there  will  be  no  decrease  in  the 
number  of  policemen,  and  that  the  salaries  will  remain  the  same.  Under 
these  conditions  liabilities  will  be  incurred  for  future  pensions  to  new 
entrants  into  the  service  when  the  new  members  are  actually  employed, 
since  the  prospect  of  getting  a  pension  can  properly  be  considered  as  part 
of  their  remuneration  for  service. 

In  order  to  give  a  complete  idea  of  the  future  growth  of  the  demands 
on  the  fund,  it  is  necessary  to  include  the  pension  payments  to  new  en- 
trants when  they  retire.  With  this  idea  in  view  a  calculation  was  made 
to  show  the  total  annual  payments  during  the  next  83  years,  at  the  end 
of  which  period  it  is  assumed  that: 

1.  All  present  pensioners  will  have  died. 

2.  The  members  of  the  now  active  force  will  have  retired  on  pen- 

sions and  will  be  deceased,  and 

3.  The  fund  will  have  reached  the  point  of  normal  operation. 

Annual  Payments  Required  if  Present  Force  Is  Maintained 

The  result  of  these  calculations  is  presented  in  Chart  V.  The  total 
annual  pension  payments  as  indicated  by  the  solid  curve  will  increase 
from  year  to  year  during  the  next  36  years  until  the  year  1948,  when 
the  load  of  the  fund  will  approximate  normal,  and  the  annual  pension 
expenditures  will  amount  each  year  thereafter  to  more  than  $4,925,000 
(see  Table  31,  actuarial  report,  page  201).  It  must  be  pointed  out  that 
each  yearly  expenditure  as  indicated  on  the  chart  represents  the  pay- 
ment of  pensions  in  consideration  of  services  rendered  in  past  years. 


57 

Therefore,  the  amounts  paid  are  in  the  nature  of  contributions  to  the 
payment  of  a  deficit  which,  when  the  point  of  normal  operation  of  the 
fund  is  reached,  will  require  $4,970,866  annually,  this  amount  being 
also  paid  for  past  services.  To  summarize — throughout  the  history  of 
the  fund,  each  administration  has  contented  itself  with  providing  the 
funds  for  meeting  only  such  part  of  pension  obligations  incurred  by  its 
predecessors  as  mature  in  the  form  of  claims  for  benefits.     At  the  same 


CHART  V-   SHOWING    THE   ANNUAL   PENSION  EXPENDITURES  OF  THE 

CITY  OE  NEW   YORK  DURING  THE  NEXT  83  YEARS  FOR  POLICE  PENSIONS  UNDER  PLAN 

NOW  IN  USE  AT  PRESENT  SALARIES   AND  WITHOUT  INCREASE  IN  FORCE 

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time  it  has  issued  new  pension  promises  under  the  operation  of  the 
plan  by  the  appointment  of  new  employees  and  the  granting  of  pen- 
sions to  those  whose  rights  are  optional  or  discretionary.  It  does  not 
operate  on  a  "reserve"  principle;  that  is,  it  does  not  lay  aside  a  suffi- 
cient amount  each  year  which,  if  put  at  interest,  would  provide  the  means 
for  making  good  all  promises  as  they  mature;  it  leaves  the  question  of 
meeting  such  obligations  as  they  mature  to  the  succeeding  administra- 
tions. The  solid  curve  of  the  chart  indicates  that,  as  the  service  about 
reaches  its  normal  size,  the  annual  pension  payments  will  be  equalized, 
and  each  succeeding  administration  thereafter  will  be  called  upon  to  con- 
tribute an  equal  annual  amount  toward  the  payment  of  pensions  for  past 
services. 


58 

Probable  Increase  in  Annual  Demands 

It  would  be  misleading,  however,  to  assume  that  such  a  condition  of 
the  fund  will  ever  actually  be  reached.  The  prediction  of  the  future  as 
projected  on  the  chart  is  necessarily  limited  to  the  theoretical  assumption 
that  no  increase  in  force  or  in  the  scale  of  salaries  will  be  made  in  the  fu- 
ture, and  that  the  pension  law  and  its  interpretation  will  remain  un- 
changed. Such  assumption  was  necessitated  in  the  case  of  actuarial  com- 
putations because  of  the  practical  difficulties  encountered  in  gauging  the 
probable  future  of  the  factors  just  mentioned  with  a  reasonable  degree  of 
accuracy.  It  is  safe,  however,  to  assume  that  increases  in  force  and  salaries 
of  the  active  service  will  be  made,  and  that  if  no  thorough  revision  of  the 
pension  law  is  effected,  the  same  will  continue  to  be  liberalized  and  ex- 
tended in  its  application.  As  a  result,  the  pension  expenditures  will  in- 
crease from  year  to  year,  and  never  reach  the  normal  point.  Under  such 
conditions  each  administration  will  spend  a  smaller  amount  in  paying  for 
the  debts  inherited  from  its  predecessors  than  the  amount  of  new  obli- 
gations it  will  incur,  and  will  leave  as  an  inheritance  to  posterity  a  debt 
unprovided  for  akin  to  the  fixed  charges  (interest  and  sinking  fund  to 
cover  depreciation)   on  borrowing. 

The  Ultimate  Cost  of  Police  Service  to  the  City 

By  means  of  the  valuation  of  the  fund  it  was  ascertained  that  within 
the  next  generation,  as  the  annual  demands  of  the  police  department  for 
salaries  and  pensions  approach  an  equalization,  approximately  $33.44 
will  be  required,  on  the  average,  to  meet  maturing  pension  obligations 
for  every  $100  paid  in  salaries  to  policemen  on  the  active  roll.  Of  this 
only  $2  will  be  contributed  by  policemen,  while  $31.44  must  be  provided 
by  the  city  as  a  charge  against  its  revenues.  Under  the  present  system 
this  proportion  of  pensions  to  salaries  is  not  apparent  because  of  the 
fact  that  pensions  are  paid  as  they  mature.  In  other  words,  the  obliga- 
tions to  creditors  incurred  by  previous  administrations  are  paid  as  the 
installments  fall  due,  while  the  settlement  of  pension  debts  incurred  cur- 
rently are  left  to  posterity.  Without  considering  the  question  as  to  which 
particular  administrations  in  the  future  will  be  called  upon  to  pay  the 
pensions,  the  real  cost  of  the  pensioning  of  members  of  the  force  to-day 
can  be  expressed  thus:  The  payment  of  each  $100  in  current  salaries 
involves  the  payment  of  pensions  in  the  future  which  will  amount  in  the 
aggregate  to  $33.44,  of  which  $2  will  be  contributed  by  the  policemen 
themselves  and  $31.44  by  the  city.  If  the  plan  were  operated  in  such  a 
way  that  each  year  and  generation  an  amount  would  be  laid  aside  for 
each  $100  spent  in  current  salaries,  which  if  put  at  interest  would  meet 
its  pro  rata  of  pension  obligations,  less  than  one-half  of  $31.44  would 
have  to  be  contributed  by  the  city  each  year  for  every  $100  on  the  ac- 
tive payroll.  The  advantage  of  such  a  method  of  securing  future  pen- 
sion payments  is  great.  It  permits  the  determination  of  the  total  cost  of 
maintaining  the  police  force  each  year;  such  cost  being  measured  by  the 
active  salary  payroll  and  the  pro  rata  of  future  pensions  earned  by  the 
members  of  the  active  force  in  consideration  for  their  services  during 
that  year.  The  failure  to  adopt  such  a  method  is  partly  responsible  for 
the  increase  in  the  cost  of  the  plan,  since  its  adoption  would  have  brought 
to  light  the  unreasonably  high  cost  of  pensions. 

For  the  purpose  of  showing  the  real  cost  to  the  city  of  the  services 


59 

of  an  average  employee  entering  the  service  at  the  age  of  25,  a  calcula- 
tion has  been  made  and  the  results  obtained  presented  (Table  34,  page 
208,  actuarial  report) .  It  appears  that  for  every  hundred  dollars  paid  in 
wages  to  the  average  employee,  the  following  amounts  are  paid  in  pen- 
sions to  the: 

Employee  himself $23 .  73 

Widows  and  children 9.71 

Total $33.44 

Contributions  by  the  employee $2 .  00 

Contributions  by  the  City 31 .44 

Total $33.44 

Applying  the  same  proportion  of  pensions  paid  by  the  city  (31.44%) 
to  the  salaries  (100%)  received  by  each  grade  of  the  present  active  force, 
the  total  (131.44%)  average  cost  of  their  services  to  the  city  per  year 
would  be  calculated  as  follows: 


Rank 


Salary,  100% 


Pension  Paid 
by  City 

(31.44%) 


Total 

(131.44%) 


Matron 

Patrolman 

Sergeant 

Lieutenant 

Captain 

Surgeon  (Acting  Inspector) 


$1,000 
1,400 
1,750 
2,250 
2,750 
3,500 


$314.40 
440.16 
550.20 
707.40 
864.60 

1,100.40 


$1,314.40 
1,840.16 
2,300.20 
2,957.20 
3,614.60 
4,600.40 


The  above  figures,  however,  should  not  be  interpreted  in  such  a  way 
as  to  mean  that  each  individual  member  of  the  force  will  eventually  re- 
ceive in  pensions  $31.44  for  every  $100  paid  to  him  during  his  active 
service.  It  is  one  of  the  unsatisfactory  features  of  the  present  plan  that, 
while  some  of  the  members  get  only  a  small  proportion  of  the  pension 
benefits  or  none  at  all,  losing  in  addition  their  2%  contributions, .  others 
receive  their  full  share  and  not  infrequently  draw  more  in  pensions  than 
in  salaries,  as  is  shown  in  succeeding  chapters  of  this  report. 


CHAPTER   VII 

Detailed  Analysis  of  Fund  Requirements 

As  indicated  on  Chart  V  (see  page  27)  the  solid  curve  represent- 
ing the  total  annual  pension  expenditures  of  the  fund  is  the  projected 
result  of  the  addition  of  the  annual  pension  payments  which  will  be 
made  to  three  definite  groups  of  pensioners  as  follows: 

1.  Former  members  of  the  force  and  their  dependents,  3,930  in  num- 
ber, who  were  on  the  pension  roll  of  the  department  on  Febru- 
ary 1,  1913. 

3.  Such  number  of  the  636  policemen  required  to  be  employed  an- 
ruary  1,  1913,  as  will  be  pensioned  in  the  future,  and  their 
dependents. 

3.  Such  number  of  the  636  policemen  required  to  be  employed  an- 
nually after  February  1,  1912,  in  order  to  keep  up  the  pres- 
ent quota  of  the  police  force,  as  will  be  pensioned  in  years  to 
come,  and  their  pensioned  dependents. 

Payments  to  be  Made  to  the  Present  Pensioners 

The  annual  pension  payments  to  this  group  of  pensioners  is  indi- 
cated on  Chart  V  by  means  of  a  dotted  line  which  registers  an  expendi- 
ture of  over  $2,000,000  in  the  first  valuation  year,  gradually  decreasing 
as  a  result  of  deaths  and  revocations  of  pensions  to  a  nominal  sum  in  the 
course  of  40  years,  and  continuing  to  decrease  for  a  further  period  of 
years  until  the  last  pension  payment  is  made.  During  the  life  of  these 
pensioners,  the  aggregate  pension  payments  will  amount  to  a  total  of 
$28,492,083.  No  assets  are  held  in  reserve  by  the  fund  for  the  payment 
of  these  obligations.  If,  for  the  sake  of  argument,  it  were  assumed  that 
the  pension  fund  had  to  pay  only  its  obligations  to  the  present  pension- 
ers, the  annual  income  from  its  miscellaneous  revenues,  which  averaged 
about  $825,000  per  year  for  the  past  five  years  (see  Table  "VI,  page  117), 
would  prove  insufficient  for  the  next  15  years  to  meet  these  obligations, 
and  the  city  would  have  to  provide  for  the  resulting  deficiencies. 

Amounts  to  be  Paid  to  Each  Class 

Chart  VI  shows  the  amounts  which  will  be  required  annually  for 
the  payment  of  pensions  to  the  various  classes  of  present  pensioners  and 
also  the  annual  totals  of  these  amounts.  The  latter  are  indicated  by 
means  of  the  solid  curve  which  is  identical  with  the  dotted  line  of  Chart 
V,  showing  the  same  payments  as  part  of  the  total  future  pension  ex- 
penditures of  the  fund.  The  payments  which  will  be  made  to  the  pres- 
ent 1,641  pensioners  retired  for  disability,  represent  a  total  of  $16,540,732. 
The  annual  amounts  required  will  gradually  decrease  from  the 
$1,122,606  to  be  paid  in  the  first  year  after  the  present  valuation  of 

61 


62 

the  fund  until  the  end  of  the  sixty-fourth  year  when,  according  to  the 
mortality  experience  of  this  class  of  pensioners,  the  last  survivor  will 
draw  his  last  pension.  The  840  pensioners  on  the  present  roll  who  were 
retired  on  regular  pensions  will  draw  in  the  first  year  after  valuation 
$640,892.  Payments  in  decreasing  amounts  will  be  made  during  the 
next  46  years,  when  the  last  pension  survivor  will  die,  according  to 
the  mortality  experience  among  service  pensioners.     The  total  cost  of 


CHART  11 -SHOWING  THE  PNNUHL  PENSION  PAYMENTS  DURING    THE  NEXT 

67   YEPRS TO  TNE  VARIOUS  CLASSES  OP PENSIONERS. WHO  WERE  ON  THE 

PSNSION  POLL  OP  THE  NEW  YORK  POLICE  PENSION  PUND  ON  PEBRUPPY  /"/SIS 

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PENSIONS             — •--  — »-  *    6./7g,9/0    ' 

\ 

A 

TOPttesi 

\ 

&SAB/UT 

Sfl9V/C£ 

\ 

\                                                                                                                     C  MIL  Off  £ 

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r—X\ 

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YEARS    o           s          ic 

/S               SO                3S              SO               5S               +C               4S 

SO            ss            *t            tS            TO    YEARS 

this  class  of  pensions  will  he  $6,172,910.  The  pensions  to  the  1,342  wid- 
ows on  the  present  pension  roll  will  require  in  the  aggregate  a  total  of 
$5,721,527,  which  will  be  paid  in  decreasing  amounts  during  the  next  67 
years,  when  the  last  beneficiary  of  this  class  is  expected  to  draw  the  last 
benefit.  The  payment  of  pensions  to  the  present  107  children  pensioners 
will  require  an  expenditure  of  only  $56,914,  which  will  be  made  in  an- 
nual installments  in  the  course  of  the  next  14  years,  when  all  beneficiaries 
will  have  reached  the  age  of  18  and  their  pensions  will  be  terminated. 


Payments   to   be   Made   to   the   Ketiring   Members   op    the   Present 
Active  Force  and  Their  Dependents 

The  annual  payments  required  to  be  made  to  this  group  of  pension- 
ers are  indicated  on  Chart  V  as  part  of  the  total  annual  pension  expendi- 


63 

tures  of  the  fund.  Chart  VII  shows  the  composition  of  the  annual 
amounts  required  for  the  payments  to  be  made  to  the  various  classes  of 
pensioners  of  which  this  group  is  composed. 

Amount  Required  Before  Last  Benefit  Is  Paid 

The  total  annual  pension  payments   (see  solid  curve  on  Chart  VII) 
will  amount  in  the  aggregate  to  $120,511,528,  and  will  be  made  in  the 


CH/IRTm-SHOWING    THE  ANNUAL  PENSION  PAYMENTS  DURING  THE  NEXT 
S3    YEARS    TO  THE  VARIOUS  CLASSES  OE  PENSIONERS  TO  BE  RETIRED 
EROM     THE  PRESENT  ACTIVE  POLICE  FORCE  OE  THE  CITY  OE  NEW  YORK 

YEARS    o          s         ip        is        so        ss        30        3 

r           4-0          +S          SO            SS           60           65             70           7S            80            SS    YEARS 

AMOUNT                                     lit         i    1 

1             '              '             '              '              '             1              1                  AMOUNT 

....... '  ■  ~TT  lu 

1          1         ' 

H^TiMJ 

—  LCG£TA/D~ 

.i___MJi4MijI  IlSt 

t                                 7V97»^  PfiYMCNTS  ro* 

O/SHS/LfTY  PENSIONS          —   mm  — .  —  *  49,<+9Q,/88 

„                                               ,                        .       • 

/               1 

S£/tWCC  Pensions             ■        .         ■        ■  *  28,731.701                 3.000.000 
WIDOWS  PEHSIOMS            #  26,  S5"0  5"2* 

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YC/7flS        O              S            10            IS            SO            SS            30            38 

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course  of  the  next  83  years.  Since  the  contributions  of  the  present  active 
force  were  used  up  in  paying  pensions  to  those  retired  in  the  past,  there 
is  no  accumulation  of  such  contributions  available  in  the  fund  to  pay  the 
future  pensions  of  the  present  active  force.  The  contributions  which 
will  be  made  annually  by  this  force  in  the  future  will  gradually  decrease 
as  the  members  withdraw  from  active  service,  while  the  pension  payments 
as  shown  on  the  chart  will  steadily  increase  for  the  next  25  years.  The 
total  amount  of  2%  deductions  of  the  active  payroll,  or  about  $280,000 
during  the  first  year,  will  only  be  sufficient  to  pay  the  pensions  maturing 
during  the  same  year,  the  amount  required  being  $119,954.  During  the 
next  years  the  contributions  will  be  less  than  the  amount  needed,  and 
during  the  succeeding  years  they  will  form  gradually  a  lesser  percentage 
of  the  amounts  actually  expended  for  pensions. 


64 

Distribution  by  Classes  of  Beneficiaries 

This  group  of  pensioners  is  composed  of  the  same  classes  of  benefi- 
ciaries as  in  the  case  of  the  present  pensioners,  the  annual  pension  pay- 
ments to  each  class  being  indicated  by  separate  curves  on  Chart  VII. 
The  estimated  periods  over  which  these  payments  will  extend  and  the 
total  amounts  to  be  disbursed  are  as  follows: 

Disability  pensions 73  years  $59,486,188 

Service  pensions 77  years  28,731,701 

Widow  pensions 83  years  26,250,524 

Children's  pensions 72  years  6,043,115 

All  pensions 83  years   $120,511,528 

Annual   Installments   Required   to   Meet   Matured    Obligations   to 
Persons  Now  on  Rolls 

As  indicated  in  the  foregoing  pages  the  fund  has  no  reserve  on  hand 
which  could  be  used  to  meet  the  obligations  to  the  present  pensioners, 
nor  has  it  an  annual  income  large  enough  to  allow  the  accumulation  of  a 
reserve  for  meeting  its  obligations  to  the  present  active  force  for  future 
pensions.  If  no  revision  of  the  present  method  of  financing  the  pension 
plan  is  made,  the  administrators  of  the  fund  will  continue  to  disregard 
the  necessity  of  accumulating  reserves,  and  will  pay  only  annually  ma- 
turing obligations.  Assuming  for  the  purpose  of  illustration,  that  mem- 
bers of  the  present  active  force  after  their  separation  from  the  service 
will  not  be  replaced  by  new  appointments,  and  that  the  force  will  be  al- 
lowed to  decrease  gradually  and  finally  discontinue,  the  fund  would  be 
required  to  pay  certain  sums  annually  for  pensions  becoming  payable. 
These  future  pension  payments  and  the  annual  amounts  which  will  be 
contributed  by  the  employees  themselves  and  the  city,  are  presented  in, 
graphic  form  on  Chart  VIII. 


Increasing  Proportion  to  be  Provided  by  City 

The  total  annual  pension  payments  indicated  on  this  chart  by  means 
of  the  solid  curve  represent,  in  the  aggregate,  a  total  expenditure  of 
$149,003,611 ;  and  it  will  require  a  period  of  83  years  in  which  to  make 
these  payments.  The  2%  deductions  from  the  salaries  of  the  force  will 
make  available  only  $4,414,556,  while  the  city  will  be  called  upon  to  pro- 
vide the  balance  or  $144,589,055  in  the  form  of  miscellaneous  revenues 
and  contributions  out  of  the  general  tax  levy.  The  contributions  of  the 
employees,  as  indicated  on  the  chart,  will  decrease  annually  as  the  mem- 
bers separate  from  the  force  until  53  years  from  now,  when  they  will  stop 
entirely  since  all  the  members  will  have  left  the  service.  The  contribu- 
tions of  the  city,  on  the  other  hand,  will  form  a  constantly  growing  pro- 
portion of  the  total  amounts  required  to  meet  annually  maturing  obliga- 
tions. 


Annual  Pension  Payments  to  be  Made  to  New  Entrants 

The   annual   pension  payments  to  this  group  of   future   pensioners 
which  will  be  recruited  from  new  entrants  into  the  service  is  indicated 


65 

on  Chart  V,  by  means  of  a  "dash  and  circle"  line,  and  represent  part 
of  the  total  annual  pension  expenditures  of  the  fund.  Although  the 
amounts  to  be  paid  in  the  future  do  not  represent  as  yet  "incurred" 
liabilities,  it  is  none  the  less  important  to  consider  them  because  of  the 
fact  that  their  incurrence  is  unavoidable  if  the  police  force  is  to  be  kept 
up  to  the  present  strength.  The  necessity  of  considering  these  future 
obligations  also  becomes  evident  in  view  of  the  fact  that,  as  shown  in 


CHART  WL^SNOyriNG  THF  annum  AMOUNTS  WH/CHW/LL  BE contributed BY THE city rnd by  the  members 

Or  THE  POLICt  rORCE  DURING  THE  NEXT  S3  YERRS  rOR  THE  PRYMENT OE MATURING  PENSION  OBLIGRTIONS 
TO  THE  PRESENT  PENSIONERS  RNO  EOR  EUTURE  PENSIONS  TO  THE  PAESEN  T  ACTIVE  rOAC€ 

YEARS     <?          f         '<>         'f        *°        >f        ■»''        1S 

~*4          -f-S          SO          SS          tSO          6S           70          7S         so          os    yrflRS 

AMOUNT                                                               1 ,_          j 

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TOT  Hi    AMOUNT  Or  2%  OfOUCT/ONS) 

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r/iONi  sm/imrs  or  />/>£S£nt  ro/tciS  '  *rn+.ss& 

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YEARS        O              S             lo            IS            10            IS           SO            3S 

4o        *s         so         ss         so         ts          70         7f         fo         sr    YEARS 

the  preceding  pages,  neither  the  deductions  from  salaries  of  the  em- 
ployees nor  the  annual  revenues  of  the  fund  will  be  sufficient  to  pay 
obligations  already  incurred  to  the  present  pensioners  and  the  present 
active  force.  The  question  of  providing  additional  funds  for  these  future 
obligations  represents,  therefore,  an  important  feature  of  the  present 
pension  problem. 


Total  Amounts  Required  by  Classes 

Chart  IX  indicates  by  means  of  the  solid  curve  the  total  annual  pen- 
sion payments  to  be  made  during  the  next  83  years  to  new  entrants  into 
the  service  after  they  retire  and  to  their  dependents,  whereas  the  remain- 
ing four  curves  represent  the  pension  amounts  to  be  made  to  the  various 


66 

classes  of  which  this  group  of  pensioners  is  composed.    The  estimated  total 
payments  during  the  next  83  years  will  be  made  as  follows : 

Disability  pensioners $130,137,177 

Service  pensioners 36,380  047 

Widow  pensioners 44^323973 

Children  pensioners 14,973,765 

Total $225,814,962 


CHART  /X  -SHOW/NG  THE  ANNUAL  PENSION  PAYMENTS  DURING  THE  NEXT 

S3    YEARS   TO   THE   VARIOUS  CLASSES  OF  PENSIONERS  TO  BE  RETIRED  FROM  THE 

rUTURE  ENTRANTS  INTO  THE  POLICE  FORCE  OF  THE  CITY  OF  NEW  YORK 

YEARS  o        s        /o       is       so       zs       30       3$      +o      +s 

so        ss       to        tf        70        JS        SO        gf    YS/l/fS 

AMOUNT                       I                1                1                1                1                1                1                            

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I        II  !      1     1   1     III     II 

YEMRS      0                        /O          IS         to         2S         30          It         40         4S 

so       is       to       ts       to       ts       it       if    ve/ms 

Small  Amount  Kequieed  During  First  15  Years 

As  indicated  on  the  chart,  the  pension  payments  to  the  future  en- 
trants into  the  service  during  the  first  15  years  will  be  very  small,  and 
will  be  made  only  to  those  members  who  retire  for  disability.  After  the 
twentieth  year,  however,  because  of  the  heavy  retirement  on  the  ground 
of  disability  and  also  because  of  the  steady  increase  in  the  number  of 
new  entrants,  the  curve  showing  the  annual  pension  expenditures  begins 
to  mount  rapidly  until  after  about  55  years,  when  the  pension  load  grad- 
ually begins  to  be  equalized.  On  the  assumption  that  a  force  of  uniform 
size  will  be  maintained  in  the  future,  this  yearly  diminishing  increase 
will  continue  until  the  year  1996,  or  83  years  from  the  date  of  valuation,. 


67 

when   the   normal,   constant,   annual   expenditure   of   $4,940,866    will    be 
reached. 

Contributions  op  New  Entrants  Sufficient  for  27  Years 

In  order  to  show  what  part  of  the  money  needed  annually  to  pay 
pensions  to  future  entrants  will  become  available  from  their  2%  salary 
contributions,  and  also  to  indicate  the  amounts  which  will  be  asked  from 


CHARTX-  SHOWING  THE  ANNUAL  AMOUNTS  WHICH  WILL  BE  CONTRIBUTED  BY  THE  CITY 

FIND  BY  THE  EMPLOYEES  DURING  THE  NEXT  83  YEARS  FOR  THE  PAYMENT  OF  MATURING 
OBLIGATIONS  TO  FUTURE  ENTRANTS  INTO  THE  POLICE  FORCE  OF  THE  CITY  OF  NEW  YORK 

YFfiRS     0            S          fO         /S         20          2S          SO         3S~        +0        +S        SO         Sf        60          tS         70          IS         20          9S  Y£flRS 

AMOUNT                        1                1               ■                I                                                                  1 
/A/ 

DOLL  A  AS 

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!  TOTAL  PFNStON  f*YM£MTS 
foooooo TO  MTU*?  £XT**#TS                                   g                                             - 

TOTML  AMOUNT  Of  *% 
DtOUCTIOMS  r*OMSM.MMEi 

TOTAL  AMOUNT  TO  S£ 

co\Tfi/3vrra  by  c/ty—  «•—  20S,26S,//A-                           / 

V 1 

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i 

YC/lftS     O           S          IO          IS        ZO          2S         30         jr         +o         +s         s 

o        ss       to        ts        70        7S        go        K   Yf/7/?S 

the  city  to  cover  deficiencies,  Chart  X  is  presented.  This  chart  shows 
that  during  the  first  20  years  the  annual  salary  contributions  of  the  new 
entrants  will  not  only  be  sufficient  to  pay  pensions  to  those  who  retire 
during  the  indicated  period,  but  will  allow  the  accumulation  of  a  re- 
serve fund  which  will  be  used  to  pay  deficiencies  occurring  during  the 
next  six  years,  even  if  no  interest  is  allowed  on  these  accumulations.  In 
the  twenty-seventh  year,  the  last  dollar  of  the  accumulated  reserve  fund 
will  have  been  expended,  and  the  city,  as  shown  by  the  "dash"  curve 
on  the  chart,  will  have  to  come  to  the  rescue  and  cover  the  deficiencies 
of  the  fund  in  annually  increasing  amounts. 

Inability  to  Meet  Obligations  Thereafter  Except  by  Appropriations 
This  chart  can  serve  as  an  explanation  of  the  fact  that  funds  estab- 
lished without  actuarial  advice  usually  are  able  to  meet  their  pension 


68 

obligations  during  a  number  of  years  until  the  employees  begin  to  grow 
old  and  retire  in  increasing  numbers.  As  a  rule,  only  when  the  last  dol- 
lar of  the  fund  is  gone  and  the  annual  demands  of  a  fund  begin  to  grow 
out  of  proportion  to  the  receipts,  the  awakening  comes  and  actuarial  ad- 
vice is  sought.  In  this  connection  it  is  of  interest  to  compare  the  above 
presented  chart  with  Chart  I  (page  27),  which  shows  the  struggles  of 
the  police  pension  fund  during  the  56  years  of  its  past  experience,  and 
to  note  the  striking  similarity  of  the  data  presented. 


CHAPTER   VIII 

How  the  Plan  Has  Operated  as  a  Means  of  Providing  Service 

Pensions 

Relative  Importance  op   Service  Pension  Provisions  to  Other  Pro- 
visions 

From  the  records  of  the  pension  bureau  no  idea  could  be  obtained 
relative  to  the  cost  of  the  various  kinds  of  pensions.  It  was  only  after 
nearly  a  year  spent  in  compilation  of  the  data  as  shown  in  this  report, 
and  at  a  cost  of  $10,000,  that  a  conclusion  could  be  reached.  This  is 
found  in  Table  28  of  the  actuarial  report,  page  190,  which  shows  the  com- 
parative cost  as  follows: 


Future    Payments    to    Present 

Pensioners  and  to  Present 

Active  Force  Required 

for  Pensions 

Amount 

Per  Cent. 

Payments  for  service  pensions 

$34,904,611 
38,072,080 
76,026,920 

23 

Payments  for  dependents'  pensions 

26 

Payments  for  disability  pensions 

61 

Total  payments 

$149,003,611 

100 

The  above  summary  shows  that  service  pensions  (those  to  members 
of  the  force  who  have  served  25  years  and  have  attained  the  age  of  55) 
occasion  the  least  expense;  that  next  in  importance  are  pensions  to  wid- 
ows and  children  of  members  of  the  force ;  and  that  the  expense  of  grant- 
ing pensions  for  what  is  called  "disability"  is  greater  than  that  entailed 
for  both  of  the  other  classes. 


Four  Kinds  op  Service  Pensions 

As  set  forth  on  page  36,  the  service  pensions  fall  into  two  general 
groups,  each  group  having  two  classes,  as  follows: 

1.    Pensions  granted  as  a  matter  of  right  upon  application: 

a.  To  all  members  55  years  old  who  have  served  25  years  on 

the  force. 

b.  To  all  veterans  of  the  Civil  War  who  have  served  20  years 

on  the  force  without  regard  to  age,  or  who  have  at- 
tained the  age  of  60  without  regard  to  length  of  ser- 
vice. 

69 


70 

2.     Pensions  granted  in  the  discretion  of  the  police  commissioner: 

a.  To  members  of  the  force  55  years  old  who,  after  20  years' 

service,  apply  for  a  pension. 

b.  To   members  of  the  force,   not  veterans  of  the   Civil   or 

Mexican  Wars,  who  have  attained  the  age  of  60. 

The  amount  of  pension  in  all  above-mentioned  cases  is  fixed  by  law 
at  "not  less  than  half"  the  salary  at  the  date  of  retirement,  and  all  pen- 
sions so  granted  are  for  life  and  exempt  from  revocation  or  amendment. 

Pensions  Granted  for  25  Years  of  Service  at  55  Years  of  Age  or  More 

The  first  of  the  four  kinds  of  pensions  mentioned  above,  requiring 
an  age  limit  of  55  years  and  25  years  of  service  for  retirement  upon  ap- 
plication, was  evidently  intended  to  be  the  main  form  of  retirement  an- 
nuity to  be  provided  to  policemen.  It  is  also  to  be  noted  that,  with  the 
minimum  entrance  age  in  the  department  at  from  21  to  30  years  and 
the  age  of  retirement  at  55,  the  policeman  is  required  to  serve  from  25 
to  34  years,  according  to  his  entrance  age,  before  he  may  retire  as  a  mat- 
ter of  right. 

Eights  Accorded  as  a  Result  of  Military  Service 

Although  there  are  only  a  few  still  living  who  can  avail  themselves 
of  the  privilege  granted  by  law  to  Civil  War  veterans,  it  is  to  be  noted 
that  the  effect  of  the  rule  is  to  add  to  an  already  liberal  federal  pension 
allowance,  a  civil  pension  more  liberal  than  any  other  service  pension 
awarded.  The  conditions  of  the  grant  have  no  relation  to  efficiency;  in 
fact,  the  reasons  which  lie  back  of  the  law  are  political  rather  than  evi- 
dence of  a  desire  to  be  beneficial  to  the  police  system. 

Discretionary  Pension  Grants  for  Twenty  Years  of  Service 

The  third  class  of  service  pensions  (those  granted  by  the  police  com- 
missioner in  his  discretion  to  policemen  at  the  age  of  55  who  have  served 
20  years)  is  limited  in  its  application  to  those  who  entered  the  service 
under  old  regulations  permitting  an  appointment  to  the  force  of  men  35 
years  old  and  over.  The  purpose  was  evidently  either  political  or  to 
enable  the  commissioner  to  get  rid  of  undesirable  members,  rather  than 
as  a  reward  of  merit. 

Discretionary  Retirement  of  Members  Over  Sixty  Years  of  Age 

The  fourth  class  of  service  pensions  (those  granted  by  the  police 
commissioner  in  his  discretion  to  compel  policemen  to  retire,  other  than 
war  veterans  who  have  reached  the  age  of  60)  has  evidently  been  pro- 
vided on  the  assumption  that  at  this  age  the  great  majority  of  policemen 
become  superannuated. 

"Straight  Pension  Plan"  Adopted 

Under  the  straight  pension  plan  adopted  by  the  city  the  employee  is 
not  conceived  as  having  any  interest  or  right  in  the  fund,  or  any  claim 


71 

to  benefits  in  case  of  death  or  superannuation  except  upon  the  fulfillment 
of  the  exact  conditions  prescribed  as  to  age  and  length  of  service.  That  is, 
there  are  no  accruing  benefits  to  be  availed  of  in  case  one  becomes  sep- 
arated from  the  service  before  the  date  as  of  which  he  has  a  right  to  be 
retired  on  an  annuity.  It  is  held  that,  since  the  employee  by  accepting 
employment  accepts  also  the  prospect  of  being  retired  subject  to  its  con- 
ditions, the  pension  arrangement  is  therefore  fair,  and  the  employee  has 
no  reason  to  be  dissatisfied.  The  arrangement  for  old  age,  commonly 
known  as  the  straight  pension  plan,  has  an  assumed  advantage  to  the 
government  of  keeping  men  in  service,  thereby  giving  to  the  government 
the  benefit  of  their  increased  efficiency. 

Service  Pensions  as  Deferred  Pay 

When  considered  from  the  viewpoint  of  the  highest  welfare  of  the 
employee,  it  is  argued  that  the  recognition  of  a  pension  as  deferred  wages 
is  in  every  way  more  beneficial: 

1.  Because  it  establishes  an  unassailable  right  not  only  to  the  pen- 

sion but  in  case  of  separation  to  any  part  thereof  which  has 
accrued  prior  to  death  or  resignation. 

2.  Because  it  leaves  the  employee  free  to  choose,  and  therefore  makes 

the  service  attractive  to  a  higher  grade  of  men. 

3.  Because  it  forces  the  government  to  recognize  accruals  of  liabili- 

ties to  be  met,  and  thereby  guarantees  the  ample  protection 
of  the  plan,  when  by  a  straight  pension  plan  there  is  a  dis- 
position to  be  over-liberal  in  promises  during  the  first  dec- 
ades; then,  having  overreached,  to  be  forced  to  curtail  in 
the  end  by  being  less  liberal  than  the  employee  had  reason  to 
hope,  and 

4.  Because  it  enables  the  employee  to  shift  from  one  government 

service  (municipal,  state,  or  national)  to  another  without  loss. 

On  such  a  basis  the  employee  would  have  a  right  to  claim  the  return 
to  him  of  the  total  of  his  theoretical  contributions  of  deferred  pay  with 
interest  if  he  died  before  the  pension  retirement  date,  or  at  any  time  he 
chooses  to  leave  the  service.  It  operates  in  the  same  manner  as  a  guar- 
anteed investment.  Those  opposing  the  straight  pension  principle  main- 
tain that  its  application  does  not  produce  the  advantageous  results  claimed 
by  its  advocates,  and  that  the  cost  is  bound  to  prove  much  higher  in  the 
end,  since  it  usually  cumulates  obligations  for  years  without  making  any 
provision  for  meeting  them.  It  is  not  the  province  of  this  report,  how- 
ever, to  discuss  the  relative  merits  of  plans,  but  to  point  out  the  results  of 
operating  the  present  one. 

Wherein  the  Plan  Has  Been  Modified 

The  lack  of  provision  by  means  of  surrender  values  for  the  separa- 
tion from  the  service  of  members  who  have  not  reached  the  retirement 
age  and  served  the  required  number  of  years  to  entitle  them  to  retire- 
ment on  a  service  pension,  has  lent  the  claim  of  justice  to  measures  pro- 
viding for  retirement  from  the  service  before  the  established  conditions 


72 

were  met.  These  measures  have  been  of  two  kinds,  viz.:  legislative  and 
administrative.  By  legislation  the  age  and  service  requirements  have 
been  reduced;  by  administration  the  disability  pension  provisions  have 
been  invoked,  when  it  seemed  desirable  to  give  men  the  benefit  of  an  an- 
nuity. As  determined  during  the  present  investigation,  in  the  period 
from  1907  to  1912,  six  years,  695  members  left  the  service  because  of  dis- 
missal and  resignation,  the  majority  being  probationary  policemen  and 
those  who  had  served  only  a  few  years  in  the  department,  as  is  evident 
from  their  ages: 

Number  Policemen  Dis- 
Age  missed  or  Resigned 

Under  23 13 

23  to  27 225 

27  to  32 254 

33  to  37 95 

38  to  42 63 

43  and  over 45 

Total 695 

Considering  the  size  of  the  force,  the  number  of  members  leaving 
the  service  without  being  pensioned  is  small.  The  number  of  retirements 
on  regular  service  pensions  requiring  a  long  period  of  service  and  upon 
reaching  the  age  of  55,  is  still  smaller.  Only  344  members  were  pen- 
sioned in  the  indicated  manner  during  the  aforementioned  period  of  six 
years.  This  is  even  more  surprising  than  the  small  number  of  with- 
drawals. An  explanation  is  afforded  in  the  number  retiring  for  disabil- 
ity. During  the  same  six  years,  1,181  members  were  retired  for  disa- 
bility, exceeding  the  total  withdrawals  without  pensions  and  retirements 
on  service  pensions  by  142. 

Question  as  to  "Whether  the  Age  Limit  op  55  Is  too  Low 

It  is  urged  that  a  law  which  provides  for  retirement  on  pensions  at 
55  does  not  accord  with  the  purposes  of  a  pension  plan.  Those  who  have 
the  benefit  of  a  hardening,  healthy,  outdoor  life  may  be  considered  al- 
most in  the  prime  of  life  at  the  age  of  55.  The  retirement  of  policemen 
at  that  age  must  of  necessity  result  in  the  loss  to  the  city  of  strong,  able- 
bodied  members.  The  provision  requiring  the  police  commissioner  to  re- 
tire a  policeman  when  he  has  reached  the  age  of  60  seems  to  indicate  that 
the  law  itself  does  not  assume  that  the  age  of  55  is  the  probable  or  aver- 
age age  of  superannuation  in  the  service,  but  that  by  specifying  the  latter 
age  for  retirement  after  from  25  to  34  years'  service,  it  intends  mainly 
to  grant  a  pension  as  a  reward  for  long  service  instead  of  on  the  ground 
of  superannuation.  In  this  connection  it  is  to  be  noted  that  60  and  65 
are  accepted  as  the  proper  superannuation  age  limits  in  23  pension 
schemes  for  policemen  in  various  cities  of  the  United  States,  according  to 
a  government  report  made  on  the  subject  of  municipal  pension  funds.1 

Inducement  to  Leave  the  Service 

Owing  to  the  absence  in  the  present  pension  plan  of  features  which 
would  encourage  the  policeman  to  stay  on  in  the  service  beyond  the  period 
entitling  him  to  retirement,  he  will  choose  in  most  cases  to  retire  while 

1  Pension  funds  for  munioipal  employees  and  railroad  pension  systems  in  the  United  States.   61st  Congress 
— Senate  Document  No.  427. 


73 

still  in  good  physical  condition.  The  certainty  of  a  steady  unassailable 
income  of  half  pay  and  the  probability,  because  of  his  capability  both 
mentally  and  physically,  of  finding  employment  outside  of  the  depart- 
ment, are  inducements  strong  enough  to  influence  him  to  quit  the  ser- 
vice, and  in  a  good  many  cases  to  improve  his  financial  condition. 

Owing  to  the  ease  with  which  retirements  on  pensions  may  be  ef- 
fected, even  before  fulfilling  the  regular  age  and  service  requirements, 
the  majority  of  policemen  leave  the  service  under  some  of  the  various 
disability  provisions.  Due  to  this  circumstance  the  available  number  of 
service  retirements  for  purposes  of  observation  is  somewhat  limited.  Of 
the  344  members  who  were  placed  on  the  pension  roll  during  six  years 
under  the  bona  fide  service  provisions,  96  left  the  service  as  soon  as  they 
could  be  retired,  either  upon  application  or  in  the  discretion  of  the  police 
commissioner,  while  the  remaining  248  pensioners  were  placed  on  the  roll 
at  the  following  ages: 

100  members  at  age  of 56  to  59 

113  members  at  age  of 60  to  65 

35  members  at  age  of 66  and  over 

Members  Leave  Service  to  Enter  Other  Employment 

That  a  great  number  of  pensioners  who  retire  under  the  regular  ser- 
vice pension  provisions  do  so  more  because  of  the  desire  to  receive  a  pen- 
sion and  at  the  same  time  obtain  profitable  employment  elsewhere  than 
because  of  superannuation,  is  evident  from  the  commonly  known  fact 
that  retired  policemen  find  it  easy  to  secure  employment  outside  of  the 
police  department.  During  the  present  investigation  efforts  were  made 
to  locate  pensioners,  and  to  ascertain  whether  they  were  employed. 
Owing  to  the  unreliable  addresses  furnished  by  the  pension  bureau  of  the 
department  in  its  annual  reports,  the  success  of  this  particular  inquiry 
was  qualified.  The  occupations  of  only  268  out  of  2,481  retired  police- 
men were  ascertained;  and  of  these  only  93  were  found  to  be  retired  on 
service  pensions,  i.  e.,  upon  reaching  the  age  of  55  and  over.  "When  it  is 
considered,  however,  that  at  the  time  of  the  investigation,  in  the  early 
part  of  1913,  only  840  of  the  total  2,481  pensioned  members  of  the  force 
were  retired  under  the  service  pension  provisions  of  the  law,  the  95 
cases  (11%)  in  which  the  occupations  were  recorded,  if  the  facts  could 
be  ascertained  for  all  persons  on  the  roll,  would  probably  be  extended  to 
such  number  as  to  form  a  considerable  proportion  of  the  total  pensioners 
in  this  class. 

The  occupations  of  the  93  service  pensioners  were  found  to  be  as 
follows : 

In  business  for  themselves 15 

In  other  City  departments 12 

Detectives 11 

Real  estate  brokers 11 

Bookkeepers  and  clerks 10 

In  other  occupations: 

Workmen 8 

Agents 4 

Attendants 3 

Inspectors 3 

Miscellaneous 16        34 

Total 93 


74 

Police  Pensioners  in  the  Employ  of  Other  City  Departments 

Of  special  interest  is  the  fact  that  twelve  service  pensioners  were 
found  to  be  holding  positions  in  city  departments  other  than  the  police 
department.  A  law  which  permits  an  employee  to  draw  from  the  city  a 
salary  and  a  pension  at  the  same  time  must  be  considered  faulty.  In  a 
private  organization,  such  an  arrangement  would  not  be  tolerated  under 
any  circumstances. 

That  the  original  intention  of  the  law  was  to  prevent  this  practice 
may  be  seen  from  the  following  section  of  the  general  provisions  of  the 
charter : 

"Section  1560.  No  person  now  receiving  or  who  may  here- 
after receive  any  pension  from  the  City  of  New  York  or  any  of  the 
departments  thereof,  or  out  of  any  fund  under  said  city,  or  any 
of  its  departments,  shall  hold  any  office,  employment,  or  position 
under  the  City  of  New  York  or  any  of  the  counties  included  within 
said  city.  Any  officer,  subordinate,  or  employee  of  said  city  or 
any  of  its  departments  or  any  of  the  counties  included  within  said 
city  now  in  receipt  of  any  such  pension  shall  forthwith  forfeit  such 
office,  position  or  employment." 

The  above  quoted  provision  was  held  by  the  courts  to  be  unconstitu- 
tional and,  therefore,  could  not  be  put  into  effect.  No  doubt  the  wording 
could  have  been  changed  so  as  to  allow  a  pensioner  to  hold  office  in  other 
city  departments,  at  the  same  time  suspend  his  pension  during  the  period 
that  he  draws  a  salary  from  the  city.  Such  a  provision  would  probably 
be  constitutional  and  at  the  same  time  equitable  to  the  city  and  its  em- 
ployees. 

In  the  case  of  ten  pensioners,  five  of  whom  were  retired  for  disability, 
and  five  under  the  regular  service  provisions,  the  details  of  their  employ- 
ment by  other  city  departments  are  presented  in  Table  XIV  (see  appen- 
dix, page  128).  As  will  be  observed  from  this  table,  the  five  service  pen- 
sioners materially  improved  their  financial  condition  by  leaving  the  police 
department  at  the  earliest  possible  age.  All  but  one  draw  more  salary 
than  they  were  getting  on  the  police  force.  The  pensions  drawn  while 
in  the  employ  of  the  city,  as  indicated  on  the  table  in  the  last  column, 
amounted  to  about  $37,000.  It  is  evident  that  the  payment  of  this  money 
is  unfair  to  the  taxpayer,  and  in  the  end  must  be  prejudicial  to  the  em- 
ployee, since  it  tends  to  create  unfavorable  public  opinion. 

The  following  questions  of  Alderman  Downing  and  answers  by  Dep- 
uty Commissioner  Dillon,  former  president  of  the  police  pension  board, 
during  a  hearing  before  your  committee  on  March  27,  1913,1  are  signifi- 
cant in  this  respect: 

Q.  Commissioner,  is  there  any  rule  in  the  Police  Department 
permitting  former  policemen  drawing  a  pension  to  hold  a  position 
in  the  city  government?     A.     I  beg  your  pardon? 

Q.  Any  rule  in  the  Police  Department  permitting  a  former 
policeman  drawing  a  pension  to  hold  a  position  under  the  city  gov- 
ernment?    A.     Nothing  prohibitive  in  the  law. 


1  Pages  4340  and  4341,  minutes  of  the  meeting  of  committee. 


75 

Q.  Well,  are  there  any  men  drawing  a  pension  working  in 
another  department?    A.    I  believe  there  are  quite  a  number. 

Q.  There  is  nothing  in  the  law  prohibiting  it?  A.  Nothing 
prohibiting  it;  no,  sir. 

Q.  "Well,  do  you  think  that  is  altogether  just  to  the  city? 
A.  Well,  I  do  not  know;  it  is  a  serious  question.  A  man  may  not 
be  able  to  do  police  duty  and  may  be  able  to  perform  other  duties 
than  the  police  duty.  There  may  be  other  positions  in  the  city 
government  that  he  would  be  able  to  perform  a  duty  in.  Usually 
the  men  who  go  out  on  a  disability  pension,  as  a  rule,  I  do  not  think 
that  they  engage  in  other  business,  but  there  are  a  number  of  them 
that  do.  Those  who  go  out  on  the  service  pension,  after  25  years' 
service,  very  many  of  them  you  will  find  in  office  buildings  through- 
out the  city  and  find  some  of  those  who  are  disabled,  physically 
disabled,  you  find  in  large  numbers  in  various  other  services. 

The  Present  Plan  Encourages  the  Retention  of  Incompetents 

It  is  natural  to  expect  that  experienced  and  efficient  men  will  have 
no  difficulty  after  retirement  in  obtaining  remunerative  employment  as 
private  detectives,  special  officers,  etc.  Since  no  inducement  in  the  way 
of  increased  pension  for  a  prolonged  service  is  offered,  they  will  undoubt- 
edly leave  the  service  as  soon  as  they  are  eligible  for  retirement.  On  the 
other  hand,  the  less  efficient  men  not  having  the  same  opportunities  for 
securing  outside  employment  and  those  whose  income,  according  to  recent 
disclosures,  has  not  been  restricted  to  the  salary  received  from  the  depart- 
ment, will  remain  on  the  force  as  long  as  possible.  It  is  evident,  therefore, 
that  the  pension  plan  as  it  operates  tends  to  defeat  its  main  object,  i.  e., 
to  increase  the  efficiency  of  the  service. 

Pensions  Based  on  Terminal  Salaries  Inequitable 

The  present  method  of  basing  the  pension  rate  on  the  salary  at  the 
date  of  retirement  is  especially  unfair  to  members  who  do  not  receive  pro- 
motions. The  amounts  granted  for  service  pensions  to  the  various  grades 
are  as  follows: 

Salary       Pension 

Patrolman $1,400  $700 

Sergeant ; 1,750  875 

Lieutenant 2,250  1,125 

Captain 2,750  1,375 

Let  us  assume,  for  the  sake  of  illustration,  that  four  members  of  the 
force  have  entered  the  service  at  the  age  of  25,  and  served  in  the  depart- 
ment 30  years.  During  the  30  years'  service  one  member  was  not  pro- 
moted and  was  retired  as  a  patrolman,  while  the  other  three  members 
were  promoted  and  retired  as  sergeant,  lieutenant,  and  captain,  respect- 
ively. Let  us  further  assume  that  the  three  men  served  an  average  period 
of  years  in  each  rank  before  promotion,  as  set  forth  on  page  4,593  of  the 
report  on  personnel  and  civil  service  features  of  the  police  department 


76 

submitted  to  your  committee.     The  length  of  service  in  each  rank  would 
be  as  follows: 

Retired  as  sergeant: 

Length  of  service  as  patrolman 11  years,  10  months 

Length  of  service  as  sergeant 18  years,    2  months 

Total 30  years 

Retired  as  lieutenant: 

Length  of  service  as  patrolman 9  years,  6  months 

Length  of  service  as  sergeant 6  years,  3  months 

Length  of  service  as  lieutenant 14  yearsj  3  months 

Total 30  years 

Retired  as  captain: 

Length  of  service  as  patrolman 6  years,  10  months 

Length  of  service  as  sergeant 3  years,    8  months 

Length  of  service  as  lieutenant 7  years,    6  months 

Length  of  service  as  captain 12  years 

Total 30  years 

Since  we  have  assumed  that  the  four  members  have  entered  the  ser- 
vice at  a  uniform  age  of  25  and  served  30  years,  their  ages  on  the  date  of 
retirement  will  be  55.  The  expectation  of  life  of  a  service  pensioner  of 
that  age  is  13.67  years.  Using  the  above  indicated  data  as  a  basis,  the 
active  pay  and  pension  received,  leaving  interest  out  of  account,  by  the 
four  members  will  be  as  follows : 


Active 
Pay 

Rate  of 
Pension 

Total 
Pension 

Per  Cent,  of 
Active  Pay 

Retired  as  patrolman 

$40,150 
46,458 
56,450 
64,013 

$700 

875 

1,125 

1,375 

$9,569 
11,961 
15,379 
18,796 

23.83 

Retired  as  sergeant 

26.73 

Retired  as  lieutenant 

27.24 

Retired  as  captain 

29.36 

As  indicated  in  the  last  column,  the  four  members  received  in  pen- 
sions a  varying  percentage  of  their  active  salaries,  the  proportion  growing 
in  favor  of  the  higher  ranking  officers.  If  the  pension  were  based  on  an 
equal  recognition  of  the  services  rendered,  that  is,  on  the  average  salary 
received  during  the  entire  service  of  each  individual  member,  the  propor- 
tion of  pension  to  active  pay  would  be  uniform,  as  follows: 


Active 
Pay 


Rate  of 
Pension 


Total 
Pension 


Per  Cent,  of 
Active  Pay 


Retired  as  patrolman 
Retired  as  sergeant .  . 
Retired  as  lieutenant 
Retired  as  captain .  . 


$40,150 
46,458 
56,450 
64,013 


$700 
810 
984 

1,116 


$9,569 
11,071 
13,452 
15,254 


23.83 
23.83 
23.83 
23.83 


77 

From  the  foregoing  comparison  it  will  be  seen  that  those  who  are  pro- 
moted have  a  very  large  inducement  to  bring  pressure  to  bear  to  have  their 
salaries  raised  just  before  retirement;  the  amount  of  the  inducement  over 
what  would  be  received  each  year  if  the  pension  were  based  on  the  average 
pay  is  as  follows: 


Retired  as  patrolman 
Retired  as  sergeant . . 
Retired  as  lieutenant 
Retired  as  captain . . . 


Present 

Pension 

Rate 


$700 

875 

1,125 

1,375 


Pension 

Based  on 

Average 

Pay 


$700 
810 
984 

1,116 


Excess 
Pension 


$65 
141 
259 


Assuming  that  each  lived  the  average  expectancy,  the  total  increased 
pay  for  promotion  of  a  patrolman  to  a  captaincy  just  before  retirement 
would  be  ($18,796  — $9,569)  $9,227.  But,  when  the  same  advantage  is 
given  to  those  who  are  retired  for  so-called  "disability,"  the  inducement 
to  obtain  influence  for  promotion  is  multiplied  by  the  added  years  of 
expectancy.  In  many  cases  the  total  pension  payments  will  exceed  the 
total  salary  payments,  as  has  been  shown  in  Table  XI,  page  122. 

Location  op  Present  Pensioners 

There  is  another  phase  of  the  retirement  list  that  is  of  interest,  viz. : 
the  residences  of  pensioners.  From  the  roll  when  examined  on  December 
31,  1912,  it  was  ascertained  that  2,411  of  the  total  of  2,439  pensioners  were 
located  as  follows: 

Manhattan  and  Bronx 999 

Brooklyn  696 

Suburbs  of  New  York 233 

Other  cities  of  the  U.  S 450 

Abroad 33 

Total 2,411 


The  above  figures  are  significant  when  considering  the  amount  of  the 
pension  paid.  A  majority  of  pensioners  were  found  to  remain  in  the 
crowded  boroughs  of  the  City  of  New  York,  where  rents  and  other  living 
necessities  are  high,  instead  of  choosing  their  residence  in  the  suburbs 
and  going  to  their  home  towns  where  the  same  pension  income  would  go 
much  further  toward  making  them  comfortable. 

Salaries  and  Pensions  of  Police  Surgeons 

In  connection  with  the  discussion  of  pension  rates,  it  is  appropriate 
to  consider  pensions  to  surgeons  who  are  regarded  as  part  of  the  uni- 
formed force.  The  present  yearly  salary  of  surgeons  is  $3,500,  and  they  are 
entitled  to  a  pension  of  $1,750  per  annum.  It  also  must  be  remembered 
that  surgeons  are  not  prohibited  from  having  a  practice  outside  of  the 
department  while  on  the  active  roll.  The  reason  that  policemen  were 
favored  above  all  the  municipal  employees  in  the  establishment  of  the 


78 

fund  is  that  they  were  assumed  to  be  employed  in  extra  hazardous  work. 
This  reasoning  does  not  apply  to  the  surgeons.  The  extraordinary  large 
salaries  and  the  lack  of  extraordinary  risk  raise  the  question  as  to  whether, 
until  the  city  provides  pensions  for  other  branches  of  the  service,  it  should 
not  be  relieved  from  the  necessity  of  carrying  the  surgeons  after  they  be- 
come 55  years  of  age.  During  the  present  investigation,  the  circumstances 
after  retirement  of  five  pensioned  police  surgeons  were  made  the  subject 
of  detailed  inquiry.  It  was  found  that  they  are  all  in  comfortable  cir- 
cumstances. One  pensioner's  address  in  the  annual  pension  report  is 
given  as  Florence,  Italy.  He  is  said  to  do  much  traveling,  and  it  ap- 
pears that  he  has  other  sources  of  income.  A  letter  is  on  file  in  the  de- 
partment in  which  the  police  commissioner  is  requested  to  furnish  the  in- 
formation as  to  the  amount  due  him  in  pensions.  Another  retired  sur- 
geon, with  a  good  practice,  permanently  resides  at  the  Park  Avenue  Ho- 
tel, where  he  has  lived  for  about  20  years.  Still  another  maintains  an 
office  in  an  exclusive  neighborhood,  and  is  in  prosperous  circumstances. 


CHAPTER   IX 

How  the  Plan   Has  Operated  as  a  Means  op  Providing  Disability 

Pensions 

Disability  Pension  Provisions 

As  mentioned  on  pages  36  and  37,  the  charter  provides  for  the  grant- 
ing of  disability  pensions  in  the  discretion  of  the  police  commissioner 
under  the  following  conditions: 

1.  Pension  of  one-fourth  to  one-half  of  final  salary  to  all  members 

of  any  age  or  length  of  service  who  are  disabled  in  the  per- 
formance of  duty. 

2.  Pension  of  one-fourth  to  one-half  of  final  salary  to  all  members 

of  any  age  who  have  served  more  than  10  and  less  than  25 
years  and  who,  through  no  misconduct  of  their  own,  are  dis- 
abled so  as  to  be  unfit  for  police  duty. 

3.  Pension  of  not  less  than  one-half  of  final  salary  to  members  of 

any  age  after  20  years  of  service  who  for  any  cause,  whether 
through  their  own  misconduct  or  not,  are  disabled  so  as  to  be 
unfit  for  police  duty. 

Discussion  op  the  Provisions 

Under  the  above  provisions,  members  who  are  disabled  in  the  per- 
formance of  duty  have  the  preference  over  those  who  are  disabled,  but  not 
in  the  discharge  of  duty  by  being  made  eligible  for  retirement  at  any  age 
or  after  any  length  of  service,  the  minimum  service  required  of  other 
disabled  members  being  ten  years. 

The  second  class  of  disability  annuities  to  persons  disabled,  though 
not  in  the  performance  of  duty,  but  through  no  misconduct  of  their  own, 
provides  for  the  same  benefits,  but  prescribes  not  less  than  ten  nor  more 
than  twenty-five  years  of  service  in  the  department.  This  would  seem  to 
indicate  that  the  annuities  to  the  beneficiaries  would  be  graduated  in 
amount,  from  one-quarter  of  the  final  salary  given  to  members  serving 
ten  years  to  one-half  of  the  final  salary  in  the  case  of  a  member  who  has 
served  25  years. 

In  the  case  of  a  patrolman  receiving  $1,400  per  annum,  the  pension 
amounts  would  be  granted  after  a  service  of  a  varied  number  of  years,  ap- 
proximately as  follows: 

10  years'  service $350 

15  years'  service 465 

20  years'  service : 580 

25  years'  service 700 

Under  this  schedule,  which  was  in  vogue  prior  to  Commissioner 
Waldo's  administration,  a  disability  pensioner  could  only  be  retired  on 

79 


80 

one-half  salary  after  not  less  than  25  years'  service,  receiving  propor- 
tionately smaller  pension  amounts  for  shorter  periods  of  service. 

Although  this  arrangement  was  seemingly  within  the  meaning  and 
intent  of  the  provision  of  the  law  above  indicated  under  the  second  pro- 
vision listed,  it  was  found  to  be  at  variance  with  the  third  plan  to  this 
extent,  viz. :  that  the  third  class,  which  included  the  second  class,  must 
be  retired  on  an  annuity  of  not  less  than  half  salary  for  disability 
after  20  years',  service.  A  number  of  patrolmen  who  were  retired  for 
disability  after  a  service  of  20  years  and  less  than  25  years  and  who,  ac- 
cording to  the  old  schedule,  received  pensions  of  less  than  half  the  final 
salary,  contended  that  they  were  entitled  to  the  full  pension  amount. 
Their  case  was  taken  up  by  the  patrolmen's  benevolent  association,  and 
about  two  months  after  Commissioner  Waldo  took  charge,  a  new  schedule 
was  adopted  under  which  the  minimum  amount  of  pension  of  one-fourth 
of  final  salary  was  granted  after  a  service  of  ten  years,  and  scaled  upward 
according  to  the  number  of  years  and  months  served,  until  the  maximum 
of  one-half  of  final  salary  was  reached  in  the  case  of  those  serving  20 
years  and  over. 

The  disability  provisions  permit  of  voluntary  as  well  as  compulsory 
retirement.  In  case  of  voluntary  application  for  retirement  under  the 
present  practice,  however,  the  commissioner  is  permitted  no  discretion,  as 
in  all  cases  the  order  of  retirement  is  based  on  a  certificate  of  disability 
furnished  after  the  examination  of  the  members  applying  for  a  pension 
by  a  board  of  three  police  surgeons  selected  by  the  commissioner. 

Retirements  fob  Disability  Compabed  with  Retibements  fob  All 
Otheb   Causes 

The  comparative  importance  of  the  disability  provisions  as  a  separate 
feature  in  the  police  pension  plan  is  well  illustrated  by  the  results  of  the 
actuarial  computations  which  have  been  dealt  with  on  page  69. 

It  was  found  that,  without  taking  into  account  future  entrants,  the 
amount  of  payments  which  must  be  made  to  persons  and  their  dependents 
now  on  the  rolls  will  be  $149,003,611  before  the  last  pensioner  will  have 
died.  Of  this  amount,  $76,026,920,  or  51%,  will  be  required  for  disability 
pensions.  The  payments  for  service  pensions  during  the  same  time  have 
been  estimated  at  $34,904,611,  or  23%,  while  the  payments  to  widows  and 
other  dependents  amount  to  $38,072,080,  or  26%;  that  is,  49%,  or  only 
$72,976,691  of  the  $149,003,611  will  be  required  to  finance  the  payment 
of  all  remaining  obligations  to  retiring  members  and  their  dependents, 
based  on  provisions  for  service,  even  including  the  allowances  to  widows, 
children,  and  parents  of  members  who  died  in  the  service  or  while  on  the 
service  or  disability  pension  rolls. 

Disability  Payments  Gbeateb  than  All  Othebs  Combined 

The  ordinary  impression  gained  from  an  examination  of  the  charter 
provisions  relating  to  police  pensions  leads  to  the  conclusion  that  the 
service  pensions  to  policemen  at  the  age  of  55  and  the  pensions  for  disa- 
bility incurred  in  performance  of  duty,  are  the  essential  features,  and 
that  all  other  pensions  for  disability  and  for  the  maintenance  of  the  wid- 
ows, children,  and  parents  of  deceased  policemen  are  collateral  induce- 
ments, the  costs  of  which  are  relatively  small.  This  assumption,  however, 
is  an  error.  The  fact  is,  that  the  burdens  placed  on  the  city  because  of 
the  disability  pensions  granted  after  a  short  period  of  service  and  at  an 


81 


early  age,  have  become  the  main  features  of  the  pension  plan.  This  is  con- 
clusively shown  not  only  by  the  figures  given  above  with  respect  to  pro- 
spective payments  to  persons  now  on  the  rolls,  but  by  the  following  com- 
parisons of  payments  to  be  met  to  discharge  obligations  to  the  three  groups 
of  disability  and  service  pensioners : 


Total  Expen- 
diture for 
Service  and 
Disability 
Pensions 

Per 

Cent. 

Expenditures  for 

Group  of  Pensioners 

Disability 
Pensions 

Per 

Cent. 

Service 
Pensions 

Per 

Cent. 

Present  pensioners 

Pensioners  to  be  retired 
from    present    active 
force 

$22,713,642 
88,217,889 

166,517,224 

100 
100 

100 

$16,540,732 
59,486,188 

130,137,177 

72.8 
67.4 

78.2 

$6,172,910 
28,731,701 

36,380,047 

27.2 
32.6 

Pensioners  to  be  retired  1 
from    the   future   en- 
trants into  the  police 
force 

21.8 

Total 

$277,448,755 

100 

$206,164,097 

74.3 

$71,284,658 

25.7 

_  l  The  amounts  set  forth  for  this  group  do  not  represent  a  complete  liquidation  of  obligations.  The  figures 
indicate  the  payments  to  be  made  to  this  group  of  pensioners  during  the  term  of  83  years,  at  the  end  of  which 
period  it  is  assumed  that  the  normal  load  of  the  fund  will  be  reached  if  there  be  no  increase  in  the  size  of  the 
service. 

These  figures  show  that  if  the  present  pension  laws  and  their  inter- 
pretation in  the  future  remain  unchanged,  even  though  there  is  not  an 
increase  of  a  man  on  the  roll  or  a  dollar  in  salaries,  the  total  expenditures 
for  service  and  disability  pensions  in  the  next  83  years  will  amount  to 
$277,448,755,  of  which  amount  $206,164,097,  or  74.3%,  will  be  required 
for  payments  to  persons  retired  on  disability  pensions,  the  service  pen- 
sioners receiving  only  $71,284,658,  or  25.7%  of  the  total. 

The  experience  of  the  pension  fund  during  six  years  (1907-1912) 
used  as  a  basis  for  the  above  calculations,  brought  out  the  fact  that  of 
1,525  members,  only  344,  or  22.6%,  were  retired  on  ordinary  service  pen- 
sions, while  1,181  members  left  the  service  on  the  ground  of  disability, 
forming  77.4%  of  the  total  number  of  retirements  made  during  the  above 
mentioned  period  of  six  years. 

Physical  Condition  of  Members  of  Force  Allowed  to  Deteriorate 
After  Entrance 
The  disability  provisions  of  the  pension  plan  indicate  the  willingness 
of  the  department  to  assume  responsibility  for  the  risk  to  which  members 
of  the  force  are  exposed  on  account  of  impairment  of  their  health  while 
in  the  service.  Interpreted  with  reference  to  the  city's  interest  in  an  effi- 
cient force,  this  willingness  is  explained  by  the  necessity  of  having  on  the 
force  only  members  who,  because  of  their  satisfactory  physical  con- 
dition, are  fit  to  perform  their  duties.  For  the  maintenance  of  a  high 
standard  of  health  among  the  members  of  the  force,  a  surgical  bureau  con- 
sisting of  25  police  surgeons  has  been  established  in  the  department. 
These  surgeons  are  responsible  for  the  health  of  the  members,  who  are 


82 

entitled  to  free  medical  treatment  during  temporary  sickness.  In  addi- 
tion to  free  medical  treatment,  the  department  grants  sick  leave ;  and  when 
the  disease  or  disability  of  a  policeman  assumes  a  permanent  character, 
he  is  eliminated  from  the  service  by  means  of  retirement  under  the  disa- 
bility provisions. 

It  is  evident  that  the  importance  of  the  supervision  of  the  health  of 
members  cannot  be  overestimated.  It  is  important  to  the  man;  it  is  im- 
portant to  the  city  as  a  means  of  maintaining  a  high  efficiency;  it  is  im- 
portant to  the  city  financially.  As  a  means  to  this  end,,  the  city  should 
not  only  provide  adequately  for  looking  after  the  health  of  the  force,  but 
should  see  to  it  that  the  plan  is  well  administered  and  that  the  men  are 
brought  within  its  discipline. 

As  a  result  of  the  severe  physical  test  to  which  new  entrants  into 
the  service  are  now  subjected,  the  force  is  recruited  with  a  picked  body 
of  men.  It  seems  reasonable  to  assume  that  the  outdoor  life  of  such  physi- 
cally perfect  policemen  should  have  a  wholesome  effect  on  their  health, 
so  far  as  the  requirements  of  the  service  are  concerned.  The  work  of  the 
average  policeman  is  not  hazardous.  In  view  of  these  favorable  condi- 
tions, and  taking  into  consideration  also  the  additional  safeguards  pro- 
vided by  the  free  treatment  of  temporary  diseases  and  the  general  medical 
supervision  of  the  force  by  the  police  surgeons,  it  is  but  fair  to  assume 
that  unless  the  element  of  personal  habits,  which  may  be  controlled  by 
discipline,  are  adverse,  the  general  condition  of  the  health  of  policemen 
should  be  excellent,  and  that  there  is  no  reason  for  a  high  rate  of  retire- 
ment on  the  ground  of  disability.  It  is  therefore  surprising  to  learn  that 
both  the  sick  list  of  active  members  and  the  pension  list  of  members  re- 
tired for  disability  are  widely  at  variance  with  this  conclusion. 

Abnormal  Rates  op  Sickness  Reported  in  Department 

During  a  recent  investigation  of  the  surgical  division  of  the  police 
department  by  the  office  of  the  commissioner  of  accounts,1  the  sick  rate 
of  the  uniformed  force  in  1910  was  found  to  amount  to  2.6%.  In  1911 
the  rate  increased  to  3%,  and  during  the  first  quarter  of  1912  showed 
3.4%.  In  the  police  department  of  Chicago  the  average  daily  sick  rate  for 
1911  was  1.5%,  while  in  Boston  it  amounted  during  the  same  year  to  1.6%. 

The  comparison  of  these  rates  would  lead  to  the  conclusion  either 
that  the  health  of  the  New  York  policeman  is  inferior,  or  that  when  mak- 
ing their  reports  the  police  surgeons  of  New  York  are  more  liberal  in 
deciding  what  should  be  regarded  as  cause  for  sick  leave.  It  cannot  be 
assumed  that  the  differences  are  due  to  climate  or  other  general  conditions 
affecting  health.  If  it  be  assumed  that  the  health  of  the  New  York  police- 
man is  not  inferior  to  that  of  policemen  in  other  cities,  then  a  question 
should  be  raised  with  respect  to  the  accepted  causes  for  sick  leave.  If  the 
health  of  the  New  York  policeman  is  inferior  to  that  of  policemen  of 
other  cities,  a  question  should  be  raised  with  respect  to  discipline. 

Surgical  Dtvision  Characterized  as  Unsatisfactory   and  Inefficient 

The  results  of  two  recent  investigations,2  made  with  the  purpose  of 
establishing  the  efficiency  of  the  work  performed  by  police  surgeons,  are 

1  Report  on  examination  of  the  Surgical  Division  of  the  Police  Department,  May  17,  1912. 

*  Examination  of  the  Surgical  Division  of  the  Police  Department  by  the  Office  of  the  Commissioner  of 
Accounts  of  the  City  of  New  York,  May  17,  1912.  Examination  of  the  same  Surgical  Division  by  the  Bureau 
of  Municipal  Research  submitted  to  your  Committee,  March  17,  1913. 


•      83 

significant  because  they  assume  that  the  surgical  division  is  not  fulfilling 
its  purpose.  The  report  of  the  commissioner  of  accounts  contains  a  frank 
condemnation  of  the  work  of  the  surgeons.  It  was  found,  while  checking 
the  daily  reports  of  surgeons,  that  nearly  half  of  the  members  reported 
as  sick  were  not  found  at  home  when  visited.  Other  indications  of  super- 
ficial work  on  the  part  of  the  police  surgeons  were  also  brought  out,  and 
the  report  concludes  with  the  statement  that  "the  sick  list  might  be  sub- 
stantially reduced  by  increased  attention  on  the  part  of  the  police  sur- 
geons. ' ' 

A  later  examination,  the  results  of  which  were  submitted  to  your 
committee  "as  of  March  17,  1913"  (see  pages  4644-4651)  has  also  led 
to  the  conclusion  that  the  surgeons  show  only  a  passive  interest  in  the 
health  of  the  department.  The  findings  presented  in  the  report  mentioned 
bear  a  direct  relation  to  the  question  of  disability  retirements,  and  there- 
fore should  be  considered  in  connection  with  this  report. 

One  of  the  conclusions  which  summarizes  the  lack  of  proper  care  of 
the  health  of  the  members  of  the  force  is  here  quoted  in  full: 

"A  thorough  search  of  the  records  reveals  no  comprehensive 
study  of  causes  of  illness,  general  causes  of  disabilities,  and  such 
other  subjects  as  would  provide  a  basis  for  making  recommenda- 
tions concerning  the  welfare  of  the  force.  There  was  no  evidence 
that  all  or  any  of  the  twenty-five  surgeons  of  the  department  have 
ever  made  a  general  medical  survey  of  the  force.  There  were  no 
evidences  of  a  comparative  study  of  general  causes  of  illness  in 
other  large  bodies  of  men  such  as  the  army,  navy,  and  other  police 
forces.  Nothing  indicates  that  the  surgeons  have  performed  any 
duty  other  than  the  mere  disciplinary  functions  defined  in  the 
rules." 

In  the  light  of  the  evident  lack  of  interest  and  carelessness  in  the 
performance  of  their  work  on  the  part  of  the  police  surgeons,  the  high 
sick  rate  of  the  New  York  police  force  cannot  be  accepted  as  conclusively 
establishing  the  good  faith  of  records  and  reports  upon  which  sick  leave 
is  granted.  Nor  does  it  seem  to  lay  a  solid  foundation  for  the  exercise  of 
discipline  over  members  for  intemperate  habits.  It  only  points  to  the 
need  for  better  discipline  of  the  police  surgeons,  and  the  need  for  a  more 
adequate  and  effective  means  of  guarding  the  health  of  policemen  and  the 
interests  of  the  city.  These  inquiries  are  also  significant  in  considering 
the  high  rate  of  retirements  on  the  ground  of  permanent  disability. 

Present   Pension    Administration    Responsible    for    Abnormally    In- 
creased Rate  of  Disability  Retirements 

While  orders  for  retirements  of  policemen  for  disability  are  based 
on  the  reports  of  police  surgeons,  this  does  not  relieve  the  city  from  bad 
administration.  The  retirement  of  members  of  the  force  under  disability 
provisions  may  still  be  largely  within  the  discretion  of  the  police  com- 
missioner, and  therefore  his  attitude  on  the  question  of  disability  is  of 
primary  importance.  He  appoints  the  police  surgeons;  he  can  determine 
the  procedure;  he  decides  who  shall  be  examined  for  disability  in  so  far 
as  this  does  not  arise  on  application  of  a  member  or  on  the  initiation  of 
the  surgeon.     As  the  head  of  the  department,  he  is  in  a  large  measure 


84 

responsible  for  the  unsatisfactory  operation  of  the  surgical  division.  In- 
•  competence  or  neglect  in  this  division  seems  to  have  been  largely  responsi- 
ble for  laying  the  foundation  for  the  retirement  of  many  policemen  on 
disability  pensions  which  could  have  been  prevented  by  faithful  adminis- 
tration. 

Law  Extremely  Loose  as  Kegards  Disability  [Retirements 

One  of  the  conditions  adverse  to  good  administration  is  the  lack  of 
definition  of  the  word  "disability"  in  the  law.  The  law  contents  itself 
with  a  general  phrase  "disabled  physically  and  mentally  so  as  to  be  unfit 
for  full  police  duty. ' '  Upon  the  interpretation  of  this  phrase,  the  decision 
as  to  whether  the  retirement  of  a  policeman  will  be  recommended  hinges. 
It  is  evident  that,  although  the  law  is  indefinite  and  can  have  only  limited 
value  in  that  it  allows  a  wide  range  of  construction,  nevertheless  the  com- 
missioner has  the  power  to  establish  a  rule  of  interpretation  which  will 
be  final;  one  which  will  be  definite  and  specific  in  its  application. 

Under  the  present  practice,  with  this  indefiniteness,  it  may  be  assumed 
that  the  policeman  is  only  disabled  when  his  disease  or  injury  seriously 
and  unquestionably  interferes  with  the  performance  of  his  everyday 
duties,  and  that  this  disability  will  continue  as  long  as  he  lives.  On  the 
other  hand,  it  is  possible  to  assume  that  the  health  and  physical  condition 
of  the  policeman  should  be  at  all  times  of  the  same  high  standard  as  is 
prescribed  by  the  civil  service  rules  at  the  date  of  appointment.  It  is 
easy  to  foresee  that  the  strict  and  uniform  application  of  the  latter  sug- 
gested rule  would,  within  a  short  time,  place  every  member  of  the  force 
in  retirement.  It  may  be  held  that  any  trivial  impairment,  which  would 
hardly  be  noticed  in  private  life,  would  incapacitate  the  person  examined 
for  ' '  full  police  duty, ' '  and  for  this  reason  make  his  retirement  on  a  disa- 
bility pension  desirable. 

Dangerous  Results  of  Present  Law 

While  the  interpretation  of  the  disability  provisions  by  former  ad- 
ministrations could  not  be  characterized  by  the  full  recognition  of  wise 
limitations,  as  is  evidenced  by  rather  heavy  disability  retirements  in  the 
past,  the  report  of  the  commissioner  of  accounts  on  the  subject  would 
lead  to  the  conclusion  that  the  present  commissioner  strongly  leans  toward 
a  stricter  interpretation  of  the  disability  term,  regardless  of  the  expense 
which  such  interpretation  entails.  Reporting  on  the  inquiry  made  in 
1912  into  the  causes  which  had  led  to  recent  increases  in  the  number  of 
disability  retirements.  Commissioner  of  Accounts  Raymond  B.  Fosdick 
made  a  statement  to  the  effect  that  Commissioner  Waldo's  policy  was  to 
assume  that  all  the  men  of  the  uniformed  force  must  be  thoroughly  able 
to  do  patrol  duty.  As  a  result,  those  who  had  been  long  reported  as  on 
sick  leave  were  ordered  before  the  board  of  surgeons,  and  many  were  sub- 
sequently retired.  Other  persons  have  from  time  to  time  been  designated 
for  examination  for  disability  retirement,  and  if  it  is  to  be  assumed  that 
under  the  present  organization  and  administration,  the  police  surgeons 
have  been  accommodating  in  granting  certificates  for  sick  leave,  it  is  quite 
as  reasonable  to  assume  that  some  significance  may  be  attached  to  an  offi- 
cial order  which  requires  a  report  to  be  made  as  to  whether  the  person  to 
be  examined  is  ' '  unfit  for  full  police  duty, ' '  an  affirmation  of  which  would 
be  used  as  a  basis  for  an  order  of  retirement  on  disability  pension. 


85 


Words  "In  Performance  of  Duty"  Meaningless  Under  Present 
Conditions 
There  is  no  rule  or  distinct  line  of  demarcation  setting  forth  what  in- 
terpretation shall  be  given  the  law.  It  is  possible  to  apply  the  more  lib- 
eral provisions  to  cases  where  retirement  may  be  thought  desirable.  Com- 
missioner Waldo's  opinion  that  a  police  officer  is  in  the  actual  discharge 
of  his  duty  at  all  times  shows  the  extent  to  which  the  original  intent  and 
meaning  of  the  law  may  be  defeated,  and  results  in  justifying  retirement 
for  any  disability  in  the  first  ten  years  of  service,  which  the  law  evidently 
meant  to  limit  to  cases  where  an  injury  or  disease  was  incurred  in  the  per- 
formance of  a  specific  act  of  duty,  such  as  wounds  received  in  the  quelling 
of  a  riot  or  while  making  an  arrest,  etc.  In  the  light  of  the  above  indi- 
cated tendency,  to  be  liberal  in  the  interpretation  of  a  carelessly  drawn- 
up  retirement  law,  the  recent  heavy  increases  in  the  number  of  disability 
retirements  during  the  present  administration  become  more  intelligible. 

Increases  in  Number  of  Disability  Eetirements 

The  following  table  shows  the  increases  in  the  number  of  retirements 
made  in  1910,  1911,  and  during  a  19-month  period,  May  23,  1911,  to  De- 
cember 31,  1912,  during  which  time  the  present  administration  was  re- 
sponsible. 


Period 

Number 

Per  Cent. 

Average 

Years  of 

Service 

Average 
Pension 

Total  Retirements: 

1910  1 

228 
360 
557 

178 
269 
449 

50 

91 

108 

100 
100 
100 

78 
75 
81 

22 
25 
19 

$674.35 

1911  » 

726  71 

May  23,  1911,  to  Dec.  31,  1912  * 

Disability  Retirements: 

1910 » 

21.7 

738.50 

1911 x 

May  23,  1911,  to  Dec.  31,  1912 2, 

Service  Retirements: 

1910 x 

19.5 

723.92 

1911  * 

May  23, 1911,  to  Dec.  31,  1912 2 

30.8 

833.33 

1  From  the  report  of  the  Commissioner  of  Accounts  on  an  examination  of  the  SurgicaliDivision  of  the 
Police  Department,  May  17,  1912,  pp.  9  and  10. 

•Compiled  by  hand  tabulation  from  the  card  records  of  the  Pension  Bureau  of  the  Police!  Department. 

The  data  presented  for  1911  embrace  a  period  during  which  the  pen- 
sion fund  was  administered  by  Commissioners  Cropsey  and  Waldo,  while 
the  last-mentioned  period  falls  entirely  within  the  19  months  of  the  pres- 
ent administration.  The  table  shows  a  rapid  increase  in  the  pension 
amounts  granted,  from  an  average  pension  of  $674.35  in  1910  to  $726.71 
in  1911,  and  in  the  19  months  of  the  present  administration  the  amount 
rose  to  $738.50;  a  total  increase  of  $64.15  per  pensioner.  These  figures 
also  indicate  that  the  ever-present  tendency  of  members  to  obtain  an 
early  retirement  for  disability  in  preference  to  remaining  in  the  service 
until  eligible  for  an  ordinary  or  service  pension  has  been,  since  May, 


86 

1911,  more  successful  in  defeating  the  original  purpose  of  the  law  than 
under  former  administrations.  In  1910  for  every  100  retirements,  78 
were  made  on  the  ground  of  disability,  while  during  the  first  19  months 
of  the  present  administration,  81  members  out  of  every  100  who  were 
pensioned  left  the  service  under  the  more  favorable  disability  provisions. 

Retirements  Under  the  Various  Disability  Provisions  of  the  Law 

For  the  purpose  of  showing  the  constant  increase  in  disability  retire- 
ments made  after  varying  periods  of  service,  statistics  have  been  prepared 
covering  the  period  from  1907  to  1912. 

The  following  table  shows: 

1.  The  number  of  members  who  were  retired  because  of  disability 

incurred  in  the  performance  of  duty  during  the  first  ten  years 
of  service. 

2.  The  number  of  those  who  left  as  disabled  after  a  period  of  ten 

years'  and  less  than  20  years'  service. 

3.  The  ever-growing  number  of  those  members  who  chose  the  favorite 

mode  of  separation  from  the  service  after  20  years  and  before 
the  age  of  55. 


Administration 

Strength 
of 
Act- 
ive 
Force 

Total 
Number 
of 
Dis- 
ability 
Retire- 
ments 

Per 

Cent 

of 

Active 

Force 

Number  Retired  After 
A  Service  of 

Total 
Num- 
ber 

Year 

Less 
Than 
lOYrs. 

10  Yrs. 

&  Under 

20  Yrs. 

20  Yrs. 

or 
more 

of 

Service 
Retire- 
ments 

1907 

Bingham 

9,461 
10,012 
10,162 
10,177 
10,207 
10,371 

168 
129 
203 

177 
268 
236 

1.78 
1.29 
2.00 
1.74 
2.62 
2.28 

6 

4 

9 

19 

15 

18 

42 
44 
73 
44 
93 
76 

120 
81 
121 
114 
160 
142 

58 

1908 

Bingham 

31 

1909 
1910 
1911 
1912 

Baker  (July  1) . . . . 
Cropsey  (Oct.  20) . 
Waldo  (Mav  23) . . 
Waldo.....' 

49 
50 
92 
64 

Total 

1,181 

71 

372 

738 

344 

Present   Physical   Examination  of  Applicants  for  Disability   Pen- 
sions of  Questionable  Value 

While  the  police  commissioner  is  primarily  responsible  for  the  admin- 
istration of  the  disability  provisions  of  the  law,  this  responsibility  must 
be  discharged  through  the  police  surgeons  who  have  to  examine  every 
prospective  pensioner,  and  furnish  certificates  of  disability  without  which 
a  disability  retirement  would  be  illegal.  For  the  protection  of  the  com- 
missioner and  the  city,  as  well  as  the  good  opinion  of  the  service,  some 
means  should  be  provided  for  bringing  the  surgeons  under  administra- 
tive control  by  requiring  the  submission  of  reports  setting  forth  facts  that 
will  show  whether  or  not  disability  certified  to  by  the  surgeons  is  real. 
The  use  of  the  fund  for  purposes  not  in  harmony  with  the  spirit  of  its 
creation  does  not  require  outright  dishonesty  on  the  part  of  the  surgeon. 
A  physically  perfect  man  probably  could  not  be  found  in  existence,  and 


87 

if  such  an  ideal  standard  of  health  were  to  be  considered  in  the  minds  of 
the  examining  physicians  as  a  requirement  for  the  performance  of  "full 
police  duty,"  the  task  on  the  part  of  the  surgeons  to  discover  imperfec- 
tions in  an  average  policeman  would  not  prove  difficult.  If  it  is  assumed 
that  defective  vision  unfits  one  for  "full  police  duty,"  it  is  probable  that 
nine-tenths  of  the  policemen  could  be  retired.  It  is  essential,  therefore, 
to  have  reported  the  exact  extent  of  the  impairment  and  whether  or  not 
it  can  be  corrected. 

Another  matter  is  of  importance.  The  surgeons  are  not  prohibited 
from  carrying  on  a  private  practice ;  in  fact,  from  making  this  their  prin- 
cipal source  of  income.  They  are  not  even  prohibited  from  including  in 
their  private  practice  the  families  of  the  members  of  the  force.  This  may 
result  in  a  business  relationship  between  the  surgeons  and  prospective  pen- 
sioners which  may  influence  the  former  to  grant  certificates  of  disability. 

It  was  reported  by  those  making  the  two  recent  examinations  of  the 
surgical  bureau  that  the  entire  work  of  the  surgeons  is  characterized  by 
carelessness  and  inattention  to  duty.  The  conclusion  to  be  drawn  from 
these  reports  is  that  there  is  lack  of  discipline  on  the  one  hand  and  lack 
of  regard  for  the  purpose  of  the  pension  plan  on  the  other.  Knowledge 
of  this  condition  makes  for  greater  looseness  in  practice  and  accommoda- 
tion to  the  wishes  of  the  persons  interested.  If  there  are  three  surgeons 
on  the  board  of  survey  who  will  lend  themselves  to  subversive  practices, 
this,  if  known,  is  sufficient  to  accomplish  any  bad  result.  The  unques- 
tionable fact  is  that  there  has  been  a  very  heavy  expense  resulting  from 
too  great  liberality  shown  in  the  granting  of  disability  pensions,  and  be- 
cause the  city  has  been  willing  to  foot  the  bills,  few  of  those  who  are  vitally 
interested  in  the  faithful  administration  of  the  fund  have  been  heard  to 
complain,  and  those  few  have  been  the  ones  who  have  been  dealt  with  in 
such  manner  that  they  have  received  small,  if  any,  benefit.  The  findings 
in  relation  to  the  activities  of  the  surgeons  presented  to  your  committee 
as  of  March  17,  1913,  are.  significant,  and  should  be  examined  in  connec- 
tion with  this  report. 

Representation  op  Associations  on  Pension  Board  Undesirable 

In  view  of  the  attitude  of  associations  of  policemen  and  pensioners, 
the  appointment  of  their  heads  to  serve  on  the  pension  board  whose  duties 
are  primarily  concerned  with  the  determination  of  pension  amounts  to 
be  granted,  would  seem  to  be  a  serious  mistake  in  policy.  In  this  connec- 
tion, the  testimony  before  your  committee  on  March  27,  1913,  of  Jeremiah 
S.  Perkins,  a  retired  patrolman,  who,  after  a  service  of  20  years  and  five 
months,  was  retired  during  the  administration  of  Commissioner  Cropsey 
on  $573  per  annum,  and  later  at  the  very  beginning  of  Commissioner 
Waldo's  administration  was  raised  to  $700  is  significant: 

Q.     The  amount  of  your  pension  when  you  were  retired  on 
May  6,  1911,  was  what?     A.     $573. 

Q.    "Who  was  the  commissioner?     A.     Commissioner  Cropsey. 

Q.    What  have  you  got  now?    A.    $700. 

Q.     That  is  the  maximum,  is  it?    A.    For  patrolman,  yes,  sir. 

Q.    You  could  not  get  more  than  that,  could  you?     A.     No, 
sir. 


88 

Q.    When  were  you  raised  to  the  limit?    A.    July  20th. 

Q.     What  year?     A.     1911. 

Q.    Who  was  commissioner  then?     A.     Commissioner  Waldo. 

Q.  "Police  Department,  July  20,  1911" — about  two  or  three 
months  afterwards,  wasn't  it — "Mr.  Jeremiah  S.  Perkins,  201  West 
135th  Street,  Borough  of  Manhattan — Dear  Sir:  The  Police  Com- 
missioner, on  the  19th  inst.,  ordered  that  the  proceedings  of  May 
5,  1911,  retiring  Patrolman  Jeremiah  S.  Perkins,  Public  Office 
Squad,  be  amended  by  fixing  the  pension  at  $700.  Bespectfully, 
William  Kipp,  Chief  Clerk."  Now,  how  did  you  go  about  after 
Commissioner  Waldo  got  in  to  get  your  pension  put  up  to  $700? 

I  just  want — no  criticism — we  just  want  to  find  out  about 

A.  (Interposing)  :  There  were  eight  or  ten  men,  I  believe,  that 
had  been  lower  than  they  thought  it  ought  to  have  been,  and  we 
met  and  held  a  consultation  over  it.  I  suggested  employing  coun- 
sel, and  they  all  agreed  upon  it.  I  went  down  and  saw  Julius 
Mayer,  spoke  to  him  about  it ;  he  said  that  if  the  men  wanted  to  get 
together  enough  monej'  to  retain  him  that  he  would  willingly  take 
the  case.  In  the  meantime,  why,  we  consulted  and  I  wrote  to  the 
president,  I  think  it  was,  of  the  Patrolmen's  Benevolent  Associa- 
tion, told  him  that  they  ought  to  take  it  up.  I  have  those  com- 
munications here,  my  letters  to  them,  and  their  replies. 

Q.  Well,  just  tell  us  the  substance?  I  do  not  care  to  read 
them  all  in  evidence.  A.  The  substance  is  that  they  engaged  Mr. 
William  Murphy,  who  was  the  attorney  for  the  Patrolmen's  Benev- 
olent Association,  and  he  took  the  matter  up  and  was  going  to  take 
it  into  court,  and  I  received  a  letter  from  him  that  he  had  been 
to  see  if  he  could  straighten  it  out,  when  he  looked  into  the  matter. 
I  afterward  received  word  that  the  pension  had  been  increased. 

Q.  So  really  you  had  nothing  to  do  with  getting  the  increase  ? 
A.     No,  sir. 

Q.     Mr.  William  Murphy  did  it  all.     A.     Yes,  sir. 

Q.  Did  the  Patrolmen's  Benevolent  Association  pay  Mr. 
Murphy,  or  did  you  gentlemen  have  to  pay  it?  A.  We  did  not 
pay  him  a  nickel. 

Q.  The  Patrolmen's  Benevolent  Association  attended  to  it? 
A.  Yes,  sir;  he  was  employed,  I  believe,  under  a  yearly  salary  to 
look  after  that  interest. 

Q.     By  this  Association?    A.    Yes,  sir. 

Q.  And  after  you  wrote  the  Patrolmen's  Benevolent  Asso- 
ciation, told  them  that  they  ought  to  take  it  up,  and  after  their 
lawyer  came  to  see  you,  then  you  knew  nothing  about  it  until  you 
were  raised  up  to  the  limit,  $700?     A.     No,  sir. 

Q.  That  is  all  you  had  to  do  with  it?-  A.  That  is  all  I  had 
to  do  with  it. 

Q.    You  didn't  see  the  Commissioner  yourself?     A.     No,  sir. 


89 

Q.    You  didn't  send  anybody  to  see  him?    A.     No,  sir. 

Q.  Were  the*  whole  crowd  of  you  raised  to  $700  ?  A.  I  be- 
lieve they  all  received  their  increase. 

Beneficiaries  Themselves  Question  Present  Practice 

The  extraordinary  expense  that  has  resulted  from  the  constantly  in- 
creasing use  of  the  disability  pension  granted  before  the  ordinary  service 
retirement  would  be  available  (i.  e.,  before  the  service  pension  require- 
ments of  25  years'  service  and  age  55  are  complied  with)  has  been  shown 
at  the  beginning  of  this  chapter.  It  has  further  been  shown  in  a  general 
way  that  a  more  frequent  use  has  been  made  of  this  method  during 
the  present  administration.  In  view  of  the  great  danger  of  having  the 
whole  pension  plan  impaired  through  inefficient  administration,  and  of 
the  resulting  high  cost  and  the  disrepute  attached  to  the  unnecessarily 
heavy  burden  imposed  on  the  taxpayer  if  the  present  methods  are  not 
checked,  it  is  of  interest  to  know  that  some  of  the  policemen  are  alive  to- 
the  situation.  In  this  connection,  a  letter  sent  by  the  late  Mayor  Gaynor 
to  Commissioner  Waldo  on  December  6,  1911,  is  of  interest: 

I  am  sending  you  an  anonymous  letter  on  a  police  department 
letter-head  about  the  doctors  certifying  policemen  for  retirement. 
I  know,  of  course,  that  we  cannot  always  give  full  attention  to 
such  communications,  but  from  what  I  know  of  the  retirement  of 
policemen  by  surgeons  in  the  past,  I  am  ready  to  believe  almost 
anything  about  it.    I  hope  you  will  make  a  full  investigation  of  it. 

Retirement  of  Persons  Whose  Health  Is  Not  Permanently  Impaired 
Among  the  cases  of  disability  pensioners  re-examined  by  physicians 
employed  by  the  commissioner  of  accounts  in  1912,  three  were  in  such 
condition  that  the  physicians  expressed  doubt  as  to  whether  the  pensions 
had  been  properly  granted;  three  were  frankly  in  good  physical  condi- 
tion, there  being  apparently  no  trace  of  the  disability)  for  which  they 
were  retired,  and  three  others  refused  to  be  examined.  On  the  other  hand, 
in  seven  cases  examined,  where  applications  for  retirement  on  the  plea 
of  disability  were  denied  in  1911-1912,  four  were  found  to  be  in  good 
physical  condition,  but  it  was  apparent  that  the  remaining  three  should 
have  been  retired.1 

Discrimination  Between  Applicants  of  Equal  Merit 

The  failure  to  certify  to  a  disability  which  warrants  retirement  is 
quite  as  serious  to  the  city's  interests  as  the  tendency,  of  the  surgeons  to 
be  accommodating  in  certifying  to  disability  when  it  does  not  exist.  It  is 
not  only  injurious  to  the  whole  service  by  tending  to  undermine  the  plan, 
but  it  works  a  special  hardship  on  the  individual  who  is  deprived  of  bene- 
fits which  he  may  fairly  expect  as  a  condition  of  employment. 

Incompetence  or  Lack  of  Good  Faith  in  Certifications  of  Persons  for 
Disability  Pensions 
A  peculiar  case  brought  to  light  during  the  present  investigation  in- 
dicates either  lack  of  good  faith  or  incompetence  upon  the  part  of  physi- 
cians certifying  to  a  permanent  disability. 


1  See  pages  12  and  13  of  the  report  on  the  examination  referred  to. 


90 

The  Case  of  Sergeant  James  F.  Vallely 

Detective  Sergeant  James  F.  Vallely  was  retired  for  disability  on 
February  14,  1905,  receiving  a  pension  of  half  his  final  salary,  or  $1,000 
per  annum.  After  a  period  of  a  little  over  ,one  year,  he  decided  that  it 
would  be  to  his  advantage  to  return  to  active  service.  The  means  for 
effecting  a  reinstatement  were  provided  through  a  special  law  passed  at 
Albany  ''authorizing  the  police  commissioner  of  the  City  of  New  York 
to  reinstate  detective  sergeants. ' ' *  Since  Sergeant  Vallely  had  been  found 
permanently  disabled  only  about  a  year  before,  however,  -it  was  necessary 
to  re-examine  him  and  find  the  disability  gone  before  he  could  be  returned 
to  active  service.  This  was  done ;  a  board  of  survey  consisting  of  Surgeons 
Augustus  H.  Brown,  Edward  T.  Higgins,  and  John  D.  Gorman  duly 
certifying  that  the  sergeant  was  "fit,  physically  and  mentally  to  perform 
police  duty."  The  sergeant  was  reinstated,  and  returned  to  his  duties 
on  June  7,  1906.  Again,  after  serving  about  two  years,  he  decided  that 
he  would  like  to  retire.  Even  then,  although  he  had  something  more 
than  25  years  to  his  credit,  his  age  was  less  than  55.  This  prevented  re- 
tirement on  a  service  pension.  He  therefore  tried  the  same  mode  of  exit 
as  on  the  occasion  of  his  first  retirement,  i.  e.,  on  the  ground  of  perma- 
nent disability.  This  time  Police  Surgeons  Walter  B.  Browner,  Edward 
J.  Donlin,  and  Samuel  M.  Johnson  found  on  May  20,  1908,  the  sergeant's 
vision  defective  to  such  an  extent  as  to  "unfit  him  for  the  performance  of 
police  duty,"  and  the  officer  was  again,  on  May  21,  1908,  pensioned  at 
the  old  rate  of  $1,000.  Later,  a  report  was  made  by  an  examiner,  who 
was  instructed  to  inquire  into  the  case.  This  report  states  that  the  pen- 
sioner is  in  good  physical  condition,  and  is  employed  by  the  Central  Trust 
Company,  54  "Wall  Street,  as  special  officer. 

The  record  of  this  case,  in  the  form  of  documents  and  correspondence 
relating  to  the  retirement,  was  found  to  be  complete  in  the  files  of  the 
department  except  such  part  as  relates  to  the  period  preceding  the  passage 
of  the  above-mentioned  senate  bill.  Copies  of  the  remaining  papers  are 
appended  on  pages  140  to  146.  From  such  cases  as  this,  it  would  appear 
that  the  certification  of  "permanent"  disability,  in  some  instances  at 
least,  is  nothing  less  than  a  farce  which  cannot  but  discredit  and  injure 
those  who  are  deserving. 

The  Case  op  Patrolman  James  E.  Wrenn 

Among  other  instances  of  the  abuse  of  the  disability  provisions  may 
be  cited  the  case  of  James  E.  Wrenn.  This  patrolman  during  his  active 
service  was  reported  to  be  collecting  graft  in  Harlem  for  Inspectors 
Thompson,  Sweeney,  Hussey,  and  Murtha.  The  complaints  of  citizens 
received  by  the  department  were  turned  over  for  investigation  to  Inspector 
Thompson,  who  replied  that  "upon  examination"  he  found  the  complaints 
were  without  foundation. 

When  the  district  attorney  began  work  on  the  graft  cases  in  which 
the  above-mentioned  inspectors  were  implicated,  Wrenn,  at  that  time, 
December,  1912,  having  less  than  20  years'  service  to  his  credit  and  there- 
fore not  being  eligible  to  retirement  on  a  service  pension,  was  found  "per- 
manently disabled"  by  Surgeons  S.  M.  Johnson,  D.  D.  Jennings,  and  E. 
H.  Fiske,  who,  on  December  10,  1912,  certified  that  the  patrolman  was  suf- 
fering from  "defective  vision"  and  "nephritis,"  which  diseases  were  of 


1  Senate  Bill  366,  Chapter  663  of  the  Laws  of  1906. 


91 

such  a  nature  as  to  unfit  and  disable  him  for  the  performance  of  "full 
police  duty."  Notwithstanding  the  fact  that  Wrenn  had  served  only  19 
years  and  9  months  in  the  department,  and  therefore  was  not  entitled  to  a 
full  pension,  his  pension  rate  was  fixed  by  the  pension  board  at  $700,  or 
half  his  annual  pay  of  $1400. 

Being  out  of  the  department,  he  then  made  his  well-known  confes- 
sions of  having  acted  as  a  graft  collector  while  in  the  service.  This,  how- 
ever, did  not  result  in  the  forfeiture  of  his  pension,  although  the  charter 
is  clear  with  regard  to  the  power  of  the  police  commissioner  to  revoke 
pensions  granted  for  disability  to  members  who  have  served  less  than  20 
years.  The  present  circumstances  of  this  pensioner  have  also  been  made 
the  subject  of  investigation,  and  it  has  been  found  that  he  is  apparently  in 
perfectly  good  health  and  comfortable  circumstances,  owning  a  "Raines 
Law  Hotel"  in  Harlem. 

The  favorable  opinion  of  a  community  in  regard  to  the  pension  fund 
cannot  continue  long  when  a  man  of  this  kind  is  allowed  to  draw  a  pen- 
sion of  $700,  while  other  policemen,  more  honest  and  less  clever,  may  die 
before  completing  25  years  of  service  and  leave  their  families  nothing. 
Or,  if  they  live,  they  may  have  to  serve,  in  some  cases,  34  years  before  they 
can  retire  on  a  $700  pension,  which  their  discredited  comrade  was  clever 
enough  to  secure  after  serving  14  years  less  than  their  own  term.  It  is  so 
serious  a  reflection  on  the  administration  that  it  not  only  lowers  the  confi- 
dence of  men  in  the  service,  but  it  may  cause  the  whole  pension  system 
to  be  worked  as  a  standing  inducement  to  political  corruption. 

Statistics  of  Retirement  Indicate  that  Not  All  Disability  Pensions 
Are  Bona  Fide 
An  analysis  of  the  number  of  disability  retirements  has  shown  that 
in  the  majority  of  cases  policemen  leave  the  force  after  20  years  of  ser- 
vice (see  page  107).  In  this  connection  the  following  table  showing  the 
length  of  service  of  449  members  who  were  retired  for  disability  during 
19  months  of  the  present  administration,  May  23,  1911  to  December  31, 
1912,  is  of  interest : 

Number 
Length  of  Service  *  of 

Retirements 

under  10  years 22 

10  years  and  under  15  years 36 

15  years  and  under  16  years 36 

16  years  and  under  17  years 23 

17  years  and  under  18  years 12 

18  years  and  under  19  years 24 

19  years  and  under  20  years 16 

20  years  and  under  21  years _. 95 

21  years  and  under  22  years 35 

22  years  and  under  23  years 38 

23  years  and  under  24  years 28 

24  years  and  under  25  years 24 

25  years  and  under  26  years 19 

26  years  and  under  27  years 13 

27  years  and  under  28  years 10 

28  years  and  under  29  years 2 

29  years  and  under  30  years 8 

30  years  and  over 8 

Total 449 


1  The  average  length  of  service  of  the  449  retired  men  was  19.48  years. 


92 

A  study  of  the  above  table  shows  that,  with  the  increase  in  length  of 
service  and  therefore  the  corresponding  increase  in  age,  the  number  of 
disability  retirements  grows  until  the  member  has  served  25  years  or 
more,  when  the  same  naturally  decreases  because  of  the  opportunity  to 
retire  on  ordinary  pensions,  on  application,  provided  age  55  is  reached. 

An  interesting  fact  becomes  evident  when  a  comparison  of  the  num- 
ber of  retirements  around  the  twentieth  year  of  service  is,  made.  After 
19  and  less  than  20  years'  service,  only  16  policemen  were  retired,  and 
probably  the  majority  left  the  service  under  compulsion,  while  almost  six 
times  this  number,  or  95  members,  left  the  force  on  the  ground  of  perma- 
nent disability  after  20  and  less  than  21  years  of  service.  This  sudden 
increase  is  due  to  the  fact  that  the  retirement  on  disability  after  20  years 
of  service  has  the  same  advantages  as  retirement  on  a  regular  pension, 
i.  e.,  the  pension  cannot  be  revoked  by  the  commissioner,  and  the  amount 
is  fixed  by  law  at  "not  less  than  half"  the  final  salary. 

Many  of  Present  Disability  Pensioners  Enjoy  Average  Good  Health 

An  effort  was  made  to  determine  the  present  occupations  of  retired 
policemen.  For  this  purpose  the  list  of  names  and  addresses  as  published 
in  the  annual  pension  report  was  compared  with  the  city  directory.  Be- 
cause of  mistakes  in  the  directory,  as  well  as  in  the  annual  report,  the 
results  of  such  a  comparison  were  limited,  and  additional  inquiries  were 
made  through  personal  interviews  and  correspondence.  Of  the  total  of 
268  policemen  who  were  found  to  have  occupations,  only  93  were  on  ser- 
vice pensions,  while  the  remaining  175  were  men  who  had  been  retired 
because  of  disability.  This  is  more  than  10%  of  the  total  number  of  disa- 
bility pensioners  on  the  roll  in  the  early  part  of  the  current  year  (1,641). 
Segregated  according  to  the  number  of  years  served  in  the  department, 
the  record  of  the  175  pensioners  is  as  follows: 

13  pensioners  retired  after  less  than  10  years'  service. 
47  pensioners  retired  after  10  and  less  than  20  years. 
115  pensioners  retired  after  20  years  or  more. 

The  occupations  of  these  175  disability  pensioners  were  found  to  bo 
as  follows: 

In  business  for  themselves i 27 

Bookkeepers  or  clerks 23 

Real  estate  brokers 23 

Watchmen,  guards  and  special  officers 16 

Detectives 14 

In  other  city  departments , 13 

In  other  occupations: 

Messengers  and  collectors 8 

Managers  and  foremen 7 

Agents ...  5 

Day  laborers 5 

Carpenters 3 

Salesmen 3 

Inspectors 3 

Superintendents 3 

Miscellaneous 22            59 

Total 175 


93 

The  above  table  showing  various  occupations  followed  by  disability 
pensioners  does  not  present  conclusive  proof  that  the  retirements  in  the 
175  cases  were  made  upon  insufficient  grounds.  It  is  quite  possible  to 
assume  that  the  disability  of  a  policeman,  although  making  him  unfit  for 
the  performance  of  "full  police  duty,"  does  not  in  the  least  interfere 
with  his  opportunities  to  secure  and  hold  a  position  in  another  field  of 
endeavor.  It  all  depends  on  the  manner  in  which  the  term  "full  police 
duty"  is  interpreted.  A  better  understanding  may  be  had  from  intimate 
knowledge  of  what  some  of  these  men  are  doing.  One  of  the  pensioners, 
Matthew  McConnell,  included  in  the  above  tabulation  under  "miscel- 
laneous" was  found  to  be  a  trainer  for  boxers.  He  was  retired  on  $500 
per  annum  after  a  service  of  less  than  20  years,  which,  under  ordinary 
circumstances,  would  lead  to  the  conclusion  that  the  disability  which 
caused  his  separation  from  the  service  was  of  a  serious  nature.  Such  con- 
clusion, however,  seems  to  be  questionable  in  view  of  his  occupation. 
Other  cases  raise  a  number  of  questions.  They  are  not  given  for  lack  of 
time  and  space. 

Disability  Pensioners  Employed  in  Other  City  Departments 

In  this  connection,  Table  XIV  (see  page  128)  is  of  special  interest. 
It  shows  that  of  the  ten  pensioners  listed  who  are  employed  in  other  city 
departments,  five  left  the  service  on  the  ground  of  disability  and  have 
substantially  bettered  themselves  financially,  receiving  more  in  salary  than 
in  pension ;  the  income  resulting  from  both  sources  being  larger  than  the 
salary  they  drew  during  their  active  service  in  the  department. 

No  Check  on  Propriety  of  Disability  Retirements 

It  was  ascertained  during  the  present  investigation  that  no  efforts 
have  ever  been  made  to  learn  whether  or  not  the  disability  of  a  pensioner 
has  disappeared  after  his  retirement.  It  is  well  known  that  there  is  a  pos- 
sibility on  the  part  of  the  examining  surgeons  to  make  a  mistake  as  to 
the  permanency  of  a  disability  and,  therefore,  a  number  of  police  pension 
funds,  which  retire  policemen  on  disability  pensions,  have  specific  rules 
providing  for  a  periodical  examination  of  disability  pensioners,  and  their 
return  to  police  duty  if  the  disability  disappears.  Notwithstanding  the 
fact  that  the  law  is  clear  with  regard  to  the  commissioner's  power  to  re- 
voke certain  disability  pensions,  no  revocation  has  ever  been  made  on  the 
ground  of  restored  health,  nor  has  any  effort  ever  been  made  to  organize 
a  system  of  physical  examination  of  members  retired  for  disability. 

The  provisions  relating  to  the  granting  of  pensions  for  disability 
after  a  service  of  ten  years  and  less  than  twenty-five  years  are  defined  in 
section  354  of  the  charter  under  paragraphs  3  and  4.  The  same  section 
emphasizes  the  fact  that  the  granting  of  pensions  under  this  section  is 
entirely  within  the  discretion  of  the  police  commissioner.  Section  356 
provides  that  "the  commissioner  may,  in  his  discretion,  order  any  pension 
granted,  or  any  part  thereof,  to  cease,  or  be  diminished,  except  those  pen- 
sions as  to  which  it  is  otherwise  provided  in  this  act,  and  as  therein  pro- 
vided. ' '  This  gives  the  commissioner  the  power  to  revoke  and  amend  any 
pensions  granted  under  section  354,  since  no  provision  to  the  contrary  is 
contained  therein. 

When  Commissioner  Waldo  was  interviewed  with  regard  to  the  lack 


94 

of  measures  in  the  department  for  physical  examination  of  disability  pen- 
sioners, he  made  a  statement  that  it  would  be  "unethical"  to  retire  a 
policeman  on  the  ground  of  disability  and  then  to  re-examine  him  and 
take  away  his  pension.  Whatever  the  meaning  of  this  statement  may  be, 
it  shows  that  the  administration  is  too  little  concerned  as  to  whether  there 
may  have  been  mistake  or  fraud  in  the  examinations,  or  unjustified  cost 
imposed  on  the  city,  or  an  improper  use  of  public  funds. 

Abnormal  Eate  op  Disability  Retirements 

The  heavy  charge  to  the  city  and  the  large  strain  on  the  fund  for 
disability  pensions  are  well  brought  out  by  the  diagram  in  the  actuarial 
part  of  this  report  on  page  158.  The  smooth  curve  showing  the  adjusted 
values  of  disability  retirements  indicates  that  the  latter  increase  abnorm- 
ally, in  the  case  of  members  41  years  old  and  upwards,  i.  e.,  after  they 
have  served  20  years  or  more.  On  page  168  of  the  actuarial  report  an- 
other table  is  presented  showing  a  comparison  of  the  rate  of  invalidity 
as  observed  in  the  police  department  of  New  York  City  during  the  six 
years,  1907-1912,  with  rates  experienced  in  other  services  and  funds.  The 
rate  of  disability  of  the  police  pension  fund  is  so  abnormally  high  in  com- 
parison with  rates  of  other  funds  that  it  raises  a  strong  presumption  that 
in  many  cases  retirements  are  made  on  insufficient  grounds. 

The  most  surprising  fact,  however,  is  brought  out  by  the  rate  of 
mortality  among  disability  pensioners  as  compared  with  the  mortality 
rate  among  service  pensioners.  Two  diagrams  are  presented  on  pages  160 
and  161  of  the  actuarial  report.  In  the  case  of  disability  retirements  after 
less  than  20  years'  service,  i.  e.,  when  the  members  are  between  21  and  50 
years  of  age,  the  mortality  rate  is  high,  indicating  that,  in  the  -majority 
of  cases,  the  policemen  were  retired  for  bona  fide  disability.  The  rate 
decreases,  however,  during  this  period,  indicating  that  as  the  pension 
amounts  increase  with  the  number  of  years  a  member  has  served  in  the 
department,  and,  consequently,  the  desirability  of  retirement  on  such  pen- 
sions increases  also,  the  policemen  who  are  placed  on  the  disability  roll 
have  prospects  of  long  life.  After  the  age  of  55  the  mortality  rate  of 
disability  pensioners  begins  to  increase,  due  to  the  normal  increased  prob- 
ability of  death  because  of  old  age.  A  comparison  of  the  rate  of  mortality 
among  disabled  policemen  with  similar  rates  observed  in  other  funds  is 
presented  in  Table  11,  page  170,  of  the  actuarial  report. 

Data  Necessary  for  Estimating  Cost  of  Disability  Pensions 

Calculations  incident  to  the  determination  of  the  proper  pension 
rates  to  be  granted  and  of  the  cost  of  operating  the  disability  phase  of 
the  plan,  depend  to  a  large  degree  on  the  reliability  of  the  following  data : 

1.  The  rate  of  bona  fide  invalidity  in  the  service. 

2.  The  mortality  rate  among  disability  pensioners. 

3.  The  ages  of  disabled  members  who  retire  on  disability  pensions. 

With  regard  to  the  first  two  factors,  the  abnormal  rates  as  shown  in 
the  actuarial  report  indicate  that  it  would  be  financially  impossible  to 
continue  the  present  method  of  retirement  for  disability. 


95 

With  regard  to  the  third  factor,  the  present  scheme  is  faulty  because 
it  does  not  recognize  the  age  of  a  pensioner  as  the  most  important  factor 
in  the  determination  of  the  pension  amounts  to  be  granted. 

It  is  necessary,  therefore,  to  point  out  that  the  experience  of  the 
fund  with  regard  to  disability  retirements  cannot  be  used  in  its  present 
shape,  in  forming  any  conclusions  as  to  what  the  invalidity  and  mortality 
rates  would  be,  or  in  estimating  the  cost  of  disability  provisions  under  a 
sound  plan,  where  only  actual,  bona  fide,  permanent  disability  cases  would 
receive  pensions.  The  pension  records  of  the  department  lack  the  most 
important  details  needed  as  a  basis  for  such  actuarial  computations.  What 
little  information  there  is  with  regard  to  the  nature  and  extent  of  the 
disabilities  which  caused  retirements,  is  presented  in  such  unsatisfactory 
form  and  filed  in  such  an  inconvenient  way  that  it  would  seem  almost  im- 
possible to  bring  the  data  together  in  any  serviceable  manner.  Unfortu- 
nately, therefore,  the  long  experience  of  the  fund  in  this  respect  has  been 
practically  wasted. 

As  pointed  out  on  page  81,  the  disability  retirements  are  responsible 
for  74.3%  of  the  total  pension  expenditures  to  be  made  to  retired  mem- 
bers of  the  force  during  the  next  83  years.  It  is  further  shown  that  dur- 
ing 1907-1912,  six  years,  77.4%  of  the  total  number  of  retirements  were 
made  on  the  ground  of  disability.  The  comparison  of  the  quoted  per- 
centage of  cost  with  the  percentage  of  the  number  of  retirements  would 
seem  to  indicate  that  the  disability  pensioners  draw  individually  less 
money  from  the  fund  than  those  who  retire  on  service  pensions.  This  is 
explained  by  the  fact  that  those  who  retire  in  the  first  years  of  service 
draw  a  small  pension,  and  in  addition,  as  shown  by  the  mortality  rates  in 
the  actuarial  report  on  page  170,  Table  11  (see  also  Table  XV,  page  130), 
their  disability  is,  as  a  rule,  of  a  serious  nature,  causing  a  great  number 
of  deaths  soon  after  retirement.  These  conditions  tend  to  lower  the  aver- 
age cost  of  disability  pensions. 

While  the  pensions  granted  for  disability  in  a  few  early  years  of 
service  are  comparatively  inexpensive,  because  of  the  high  mortality 
of  the  pensioners,  the  pensions  granted  after  a  longer  service  result  in  a 
heavy  burden  on  the  fund  due  to  the  high  pension  rates  granted  and  the 
lower  rate  of  mortality  of  the  pensioners.  As  pointed  out  on  page  188  of 
the  actuarial  report,  the  average  pension  allowance  made  in  the  case  of 
disability  retirements  during  the  six-year  period,  1907-1912,  formed  47% 
of  the  final  salary  of  the  pensioner.  In  view  of  the  fact  that  the  disability 
pension  rates  vary  from  25%  to  50%  for  retirements  after  from  10  to  20 
years'  service,  it  is  evident  that  the  great  majority  of  disability  retire- 
ments are  made  after  the  members  have  served  20  years  in  the  depart- 
ment, as  indicated  on  page  86. 

The  heavy  rate  of  disability  retirements  after  20  years'  service,  as 
compared  with  the  singularly  insignificant  number  of  service  retirements, 
leads  to  the  conclusion  that  the  disability  provisions  of  the  pension  plan 
have  the  effect  of  reducing  the  retirement  conditions  from  25  years'  ser- 
vice and  the  age  of  55  to  20  years'  service  regardless  of  age. 

Relative  Cost  of  Officers'  as  Compared  with  Patrolmen's  Disability 
Pensions 

Since  the  final  salary  is  taken  as  a  basis  for  calculating  pensions,  the 
officers  who  least  need  pensions  get  a  larger  pro  rata  than  patrolmen. 


96 

For  the  purpose  of  illustrating  the  operation  of  this  practice  in  this  re- 
spect, let  us  assume  that  four  policemen  entered  the  service  at  the  average 
age  of  25,  and  that  after  20  years'  service  they  retired  on  the  ground  of 
disability  with  the  rank  of  patrolman,  sergeant,  lieutenant,  and  captain, 
respectively.  Let  us  further  assume  that  these  officers  served  in  each  rank 
the  average  number  of  years  as  set  forth  on  page  4593  of  the  report  on 
personnel  and  civil  service  features  of  the  police  department.  The  length 
of  service  in  each  rank  would  be  as  follows : 

Retired  as  sergeant: 

Length  of  service  as  patrolman 11  years,  10  months 

Length  of  service  as  sergeant 8  years,    2  months 

Total 20  years 

Retired  as  lieutenant: 

Length  of  service  as  patrolman 9  years,    6  months 

Length  of  service  as  sergeant 6  years,    3  months 

Length  of  service  as  lieutenant 4  years,    3  months 

Total 20  years 

Retired  as  captain: 

Length  of  service  as  patrolman 6  years,  10  months 

Length  of  service  as  sergeant 3  years,    8  months 

Length  of  service  as  lieutenant 7  years,    6  months 

Length  of  service  as  captain 2  years, 

Total 20  years 

Since  we  have  assumed  that  the  four  members  entered  the  service  at 
a,  uniform  age  of  25  and  served  20  years,  their  age  on  the  date  of  retire- 
ment will  be  45.  The  expectation  of  life  of  a  disability  pensioner  of  that 
age  was  found  to  be  17.8  years.  Using  the  above  indicated  data  as  a 
basis,  the  active  pay  and  pension  received  by  the  four  members  would 
be  as  follows: 


Disability  Retirements 

Active 
Pay 

Rate  of 
Pension 

Total 
Pension 

Per  Cent,  of 
Active  Pay 

Retired  as  patrolman 

$26,150 
28,794 
21,762 
36,513 

$700 

875 

1,125 

1,375 

$12,460 
15,575 
20,025 
24,475 

47.65 

Retired  as  sergeant 

54  09 

Retired  as  lieutenant 

63  05 

Retired  as  captain 

67.03 

The  larger  cost  of  pensions  to  higher  officers  shows  that  the  present 
disability  pensions  operate  most  favorably  to  those  who  need  them  least. 


97 

Cost  op  Disability  Pensions  Compared  with  Cost  op  Service  Pensions 

The  difference  in  the  cost  of  pensions  of  the  same  amounts  granted 
to  disability  pensioners  at  the  age  of  45  and  to  service  pensioners  at  the 
age  of  55  is  great,  as  may  be  seen  from  a  comparison  of  the  above  table 
with  a  similar  table  containing  data  for  service  retirements,  presented 
below : 


Service  Retirements 

Active 
Pay 

Rate  of 
Pension 

Total 
Pension 

Per  Cent,  of 
Active  Pay 

Retired  as  patrolman 

$40,150 
46,458 
56,450 
64,013 

$700 

875 

1,125 

1,375 

$9,569 
11,961 
15,379 
18,796 

23  83 

Retired  as  sergeant 

26  73 

Retired  as  lieutenant 

27.24 

Retired  as  captain 

29.36 

While  the  pensions  granted  for  disability  cost  more  than  service 
pensions,  the  contributions  of  the  disability  pensioners  during  a  shorter 
period  of  service  are,  of  necessity,  smaller  than  those  made  by  service 
pensioners  during  a  longer  term,  as  may  be  seen  from  a  comparative 
table  which  follows: 


2%  Contributions 

Total  Pension 

Per  Cent. 

Contributed  by 

Employee 

Service 
Pensioner 

Disability 
Pensioner 

Service 
Pensioner 

Disability 
Pensioner 

Service 
Pensioner 

Disability 
Pensioner 

Retired  as  patrolman 

Retired  as  sergeant 

Retired  as  lieutenant .... 

$803 

929 

1,129 

1,280 

$525 
576 
635 
730 

$9,569 
11,961 
15,379 
18,796 

$12,460 
15,575 
20,025 
24,475 

8.39 
7.77 
7.34 
6.81 

4.21 
3.69 
3.17 
2.98 

The  following  table  shows  the  average  annual  cost  of  the  active  ser- 
vice of  the  eight  above-mentioned  disability  and  service  pensioners,  in  so 
far  as  such  service  is  compensated  by  a  pension: 


Total  Pension 

Pension  Per  Year 
of  Active  Service 

Service 
Pensioner 

Disability 
Pensioner 

Service 
Pensioner 

Disability 
Pensioner 

Retired  as  patrolman 

$9,569 
11,961 
15,379 
18,796 

$12,460 
15,575 
20,025 
24,475 

$318.97 
398.70 
512.63 
626.53 

$498  40 

Retired  as  sergeant 

623  00 

Retired  as  lieutenant 

801  00 

Retired  as  captain 

979  00 

98 

In  order  to  show  the  average  annual  cost  to  the  department  of  the 
services  of  disability  pensioners,  such  cost  consisting  of  active  pay  and 
pension  has  been  determined  in  the  case  of  52  individual  disability  retire- 
ments, and  presented  in  Table  XVII  (see  page  134).  This  data  should 
be  compared  with  Table  XVI  (see  page  132),  giving  similar  information 
in  the  case  of  five  service  retirements. 


CHAPTER   X 

How  the  Plan  Has  Operated  as  a  Means  op  Providing  Pensions  to 
Dependents  op  Policemen 

Nature  op  Problem  Involved  in  Pensioning  Dependents 

In  considering  this  phase  of  the  present  plan  the  first  question  to 
be  considered  is  whether  and  under  what  conditions  the  city  should  under- 
take to  pay  pensions  to  relatives  of  decedent  policemen.  The  retirement 
pensions  provide  a  protection  to  the  policeman  and  his  family  against 
poverty  in  old  age,  when  he  is  no  longer  able  to  render  efficient  service. 
These  pensions  are  granted  when  the  recipient  is  still  at  an  age  to  engage 
in  business  or  obtain  other  employment.  Having  shown  this  marked  liber- 
ality to  policemen  when  many  thousands  of  other  civil  servants  of  the  city 
are  wholly  without  provision  for  old  age,  the  questions  arise : 

1.  "Whether  it  is  a  wise  step  for  the  city  to  go  further  in  helping 

employees  to  provide  for  their  families. 

2.  Whether,  in  case  it  is  decided  to  continue  to  grant  annuities  to 

the  families  of  decedent  employees,  these  should  not  be  of  uni- 
form amount,  so  that  the  relief  will  be  primarily  to  those  of 
lower  rank  and  those  who  really  need  support,  making  to  these 
much  more  liberal  allowances  than  at  present. 

3.  Whether  in  any  event  the  benefits  should  not  be  confined  to  those 

who  were  members  of  the  family  at  the  time  of  retirement,  and 
not  hold  out  an  inducement  to  contract  new  family  obligations 
while  on  the  roll  of  pensioners  with  a  view  to  making  the  an- 
nuity available  to  persons  not  in  any  way  connected  with  the 
service  for  a  long  time  after  the  death  of  the  retired  member. 

Aside  from  the  question  of  cost,  it  is  to  be  assumed  that  any  plan 
adopted  should  be  based  on  ideals  of  community  welfare  and  not  on  the 
personal  advantage  of  individuals.  The  pension  plan,  therefore,  should 
not  be  one  which  will  weaken  the  moral  force  of  beneficiaries;  and  as  an 
institutional  matter  the  grant  should  not  be  based  on  a  multitude  of  fac- 
tors which  are  not  in  any  way  related  to  the  policeman's  service  to  the 
community. 

It  has  been  urged  that  grants  to  widows  should  be  considered  as  a 
question  separate  and  apart  from  retirement.  On  the  occasion  of  an  in- 
vestigation into  the  causes  which  led  to  the  insolvency  of  the  civil  service 
retirement  fund  in  New  South  Wales,  Mr.  Teece,  the  examining  actuary, 
expressed  himself  with  regard  to  gratuities  to  widows  and  relatives  of 
deceased  officers  as  a  provision  "repugnant  to  the  principles  of  a  super- 
annuation scheme."  This  viewpoint  has  also  been  urged  in  relation  to 
the  pension  plan  of  the  police  department,  the  object  of  which  is  princi- 
pally to  increase  the  efficiency  of  the  members  of  the  force  and  not  to 
act  as  a  fund  for  the  aged  and  dependent.     In  support  of  this  view  it  is 

90 


100 

.  said  that  it  is  of  the  highest  social  advantage  to  have  policemen  them- 
selves assume  the  obligation  of  caring  for  their  families,  and  the  families 
so  to  conduct  themselves  that  they  may  have  ordinary  comforts  after  the 
death  of  the  retired  employees.  The  early  retirement  would  contribute 
to  this  result.  If  it  is  desirable  not  to  leave  the  matter  to  the  member, 
there  are  various  plans  which  might  be  invoked  to  do  this.  It  is  possible, 
for  example,  to  empower  the  department  to  require  its  members  to  take 
out  insurance  for  their  families.  It  is  possible  for  the  city  to  establish 
savings  funds  with  guaranteed  interest-bearing  deposits  without  cost  of 
administration.  Again,  in  case  of  actual  want  arising  through  misfor- 
tune, there  are  remedies  to  be  resorted  to  that  would  comport  with  a 
social  scheme  of  relief.  Since,  however,  the  main  purpose  of  this  report 
is  to  paint  the  picture  of  present  conditions  and  the  results  of  present 
practices,  and  to  leave  to  subsequent  consideration  specific  recommenda- 
tions, this  chapter  will  be  given  over  to  observations  on  the  operation  of 
the  present  plan. 

Pensions  to  Dependents  Must  Be  Added  to  Cost  of  Service  and  Disa- 
bility Retirements 

The  provisions  of  the  charter  relating  to  the  pensioning  of  the  de- 
pendents of  policemen  are  set  forth  on  page  37.  Under  the  present  pension 
plan,  the  city  undertakes : 

1.  To  repair  the  loss  to  those  who  share  in  the  salary  of  the  police- 

man (to  the  extent  of  the  pension  allowances)  when  such  in- 
come is  lost  through  death  of  the  employee  while  in  the  ser- 
vice. 

2.  To  extend  the  same  benefits  to  those  who,  when  a  pensioner  loses 

his  pension  by  death,  would  be  deprived  of  this  means  of  sup- 
port. 

The  principles,  therefore,  underlying  the  retirement  of  members  of 
the  force  on  service  and  disability  pensions,  which  have  been  previously 
discussed  in  this  report,  are  also  recognized  in  the  pensioning  of  their 
wives,  children,  and  parents.  The  benefits  conferred  upon  the  dependents 
of  policemen  must  for  that  reason  be  regarded  as  an  extension  of  the 
original  plan  to  provide  an  income  after  retirement  whether  for  length 
of  service  or  for  disability,  and  in  effect  to  carry  the  contributions  of  the 
city  over  to  the  next  generation. 

Pensions  to  Dependents  Cost  More  than  Service  Pensions 

Simply  to  give  perspective  to  the  subject,  the  relative  importance  of 
this  additional  feature  of  the  present  pension  system,  so  far  as  the  ques- 
tion of  cost  is  concerned,  may  again  be  stated.  Assuming  that  no  pen- 
sions will  be  granted  to  anyone  who  is  not  now  either  on  the  pension  roll 
or  on  the  active  force,  and  that  the  present  practice  will  be  continued 
for  these,  the  future  pensions  would  be  distributed  as  follows: 

Pension  payments  to  service  pensioners $34,904,611 —  23% 

Pension  payments  to  disability  pensioners 76,026,920 —  51% 

Pension  payments  to  widow  pensioners 31,972,051 —  22% 

Pension  payments  to  children  pensioners 6,100,029 —    4% 

Total  pension  payments $149,003,611—100% 


101 

It  should  be  noted  that  the  pensioning  of  widows  (22%)  and  children 
(4%)  costs  the  department  more  than  the  retirement  of  members  of  the 
force  (23%)  on  pensions  for  "service."  This  is  explained  by  the  fact 
that  not  only  are  widows  and  dependents  of  deceased  "service"  pen- 
sioners placed  on  the  pension  roll,  but  also  the  widows  and  dependents 
of  deceased  "disability"  pensioners. 

Cost   of   Pensions   to   Dependents   Per   Each   $100   Paid   to   Active 
Members 

Another  view  may  be  taken  of  the  relative  importance  of  pensions 
to  dependents.  According  to  the  data  presented  in  Table  34,  page  208, 
of  the  actuarial  report,  for  every  $100  in  salaries  paid  to  the  active  mem- 
bers, the  city  must  ultimately  pay  $33.44  in  pensions  to  persons  who 
have  retired,  or  their  dependents.  Of  this  $33.44  paid  out  for  pensions, 
$23.73  will  be  paid  to  those  who  have  been  retired  from  the  force  for 
"disability"  and  "service,"  and  $9.71  will  be  spent  as  pensions  to  de- 
pendents. In  other  words,  for  every  $100  spent  on  pensions  $70.96  will 
be  paid  to  members  while  in  retirement  and  $29.04  to  relatives  after  their 
death. 

"While  Total  Expenditures  Are  Large,  the  Present  Plan  Does  Not 
Provide  Against  Want 

Assuming  that  the  city  adopts  the  policy  of  protecting  the  widows 
and  orphans  of  policemen,  the  large  amount  ($38,072,080)  which  will  be 
paid  to  those  dependents  would  seem  to  justify  the  conclusion  that  ample 
means  will  be  made  to  provide  them  against  want.  This,  however,  is  not 
accomplished.  If  the  policy  indicated  is  to  be  carried  out,'  jihe  benefits 
must  be  increased.  On  page  188  of  the  actuarial  report'  it  is'  sftown  that 
during  the  six  years,  1907-1912,  preceding  this  investigation,  the  'average 
allowance  to  widows  amounted  to  $283  per  year,  and  $152  -per1 /year  to: 
each  family  of  children  to  continue  until  the  youngest  child  reaches  18 
years  of  age.  It  is  evident  that  $5.44  per  week  ($283  per  year)  is  insuffe- 
cient  to  protect  a  widow  against  the  absolutely  essential  necessities  of 
life,  and  that  in  order  to  exist  she  would  be  obliged  to  find  work.  The 
additional  pension  received  in  the  case  of  children,  the  maximum  amount- 
ing to  a  weekly  income  of  $2.92  ($152  per  year)  cannot  be  seriously 
regarded  as  an  adequate  relief  under  the  circumstances. 

Benefits  Not  Distributed  Equitably  or  According  to  Needs 

But  more  serious  for  individual  pensioners  is  the  fact  that  the  aver- 
age allowance  does  not  go  to  all.  Those  who  are  otherwise  protected  ob- 
tain the  largest  allowances,  while  those  who  are  in  need  receive  less. 
Table  IX,  on  page  119,  indicates  the  annual  amounts  received  by  the 
1,338  widows  who  were  on  the  pension  roll  in  February,  1913.  Of  this 
number,  1,004,  or  75.8%,  were  receiving  $300  and  less  than  $400  per 
year ;  18  were  on  an  annual  pension  income  of  more  than  $400,  while  316 
widows,  or  22.7%  of  the  total,  were  drawing  less  than  $300  per  year. 
Analyzing  again  the  benefits  to  the  last  group,  it  is  found  that  169  were 
pensioned  on  less  than  $200  per  year,  which  means  a  weekly  income  of 
less  than  $3.85. 


102 

Lack  of  Provision  for  Relief  in  Case  of  Policeman's  Death  After 
Less  than  10  Years  in  Active  Service 
One  of  the  gross  inequities  in  the  operation  of  the  present  plan  is 
found  in  the  treatment  given  to  widows  and  children  of  certain  members 
of  the  force  who  died  in  service  and  those  who  die  after  retirement.  To 
the  first  class  no  relief  is  given,  to  the  second  class  a  pension  is  given  as 
long  as  the  member  lives,  then  the  benefits  are  extended  to  the  widow  as 
long  as  she  lives,  and  then  to  the  children  till  they  reach  the  age  to  earn 
an  independent  income.  Although  the  present  pension  plan  is  in  part 
contributory,  it  does  not  recognize  the  employee's  right  to  a  pension  un- 
less he  has  complied  with  the  retirement  conditions.  No  surrender  values 
are  established,  and  the  pensions  granted  to  the  widows  and  children  of 
a  policeman  bear  little  or  no  relation  to  the  value  of  his  services  to  the 
department.  If  a  deceased  member  has  served  less  than  ten  years,  no  pro- 
vision is  made  for  the  relief  of  his  dependents  unless  he  was  killed  in  the 
discharge  of  duty,  when  a  maximum  allowance  of  $600  per  year  is  paid 
to  his  widow  or  children,  or,  in  the  absence  of  a  family,  to  his  dependent 
parents.  During  the  six-year  period,  1907-1912,  only  27  out  of  a  total  of 
496  members  who  died  while  in  active  service  lost  their  lives  due  to  the 
performance  of  some  specific  act  of  duty.  The  dependents  of  a  member 
dying  during  the  first  ten  years  of  service  from  causes  not  included  in 
the  discharge  of  duty  are  not  entitled  to  any  benefits  from  the  depart- 
ment, although  during  that  time  he  will  have  contributed  20%  of  a  year's 
pay. 

A  Question  Raised  with  Respect  to  Benefits  to  "Widows  of   Disa- 
bility Pensioners 

As  shown  on  page  81  in  the  chapter  on  disability  pensions,  about 
three  times  as  much  is  paid  out  on  disability  pensions  as  on  service  pen- 
sions. During  th3  six-year  period,  1907-1912,  of  a  total  of  1,525  retire- 
ments, only  344  were  made  on  the  ground  of  long  service  and  age  limit, 
while  1 ,181  policemen  left  the  department  before  complying  with  the  regu- 
lar retirement  requirements,  on  the  ground  of  disability,  the  nature  of 
which  in  many,  if  not  most,  cases  was  not  serious  enough  to  interfere  with 
the  pensioner's  chances  for  long  life.  This  may  be  seen  from  the  mor- 
tality rates  determined  among  the  disability  pensioners,  set  forth  on  pages 
161  and  170  of  the  actuarial  report,  both  by  means  of  a  table  and  a  dia- 
gram. The  bona  fides  of  many,  if  not,  most  of  these  disability  pensioners 
are  open  to  question.  So  long  as  this  condition  prevails,  so  long  as  the  dis- 
ability pension  is  used  for  purposes  which  are  questionable,  if  not  fraudu- 
lent, the  continuation  of  the  pension  benefits  to  the  relatives  of  the  1,181 
disability  pensioners  is  a  matter  for  serious  consideration,  especially  when 
it  is  known  that  many  of  the  widows  and  orphans  of  the  344  service  pen- 
sioners are  inadequately  provided  for.  The  large  number  of  widows  of 
disability  pensioners  on  the  roll  explains  why  it  is  that  the  widows'  bene- 
fits cost  more  than  the  benefits  to  service  pensioners. 

Insecurity  of  Pension  Income  Due  to  Absolute  Discretionary  Powers 
of  Commissioner 

Another  serious  defect  in  the  present  plan  lies  in  the  uncertainty  of 
its  operation.    This  is  largely  due  to  the  power  of  the  police  commissioner 


103 

to  decide  what  benefits  shall  be  given.  This  results  in  grave  injustice  being 
done  to  some  of  the  pensioned  dependents  of  policemen.  It  has  been  shown 
that  the  average  pension  granted  during  the  six-year  period,  1907-1912, 
amounted  only  to  $283  per  year.  Small  as  such  an  income  is,  it  may  prove 
of  some  benefit  as  a  protection  against  poverty.  There  is  not  only  the 
danger  of  personal  bias,  but  every  change  of  administration  of  the  police 
department  may  be  accompanied  by  a  change  in  pension  policy.  Much 
depends  on  the  attitude  of  each  administration  with  regard  to  the  inter- 
pretation of  the  pension  law.  By  one  a  tendency  to  economize  may  be  dis- 
played, and  the  existing  pensions  scaled  down  according  to  a  newly  adopted 
schedule;  by  another  a  liberal  interpretation  of  the  law  may  result  in 
raising  all  pensions  to  the  limit  allowed  by  law.  It  is,  therefore,  not  sur- 
prising that  with  each  change  of  administration  the  army  of  almost  1,400 
widows  on  the  pension  roll  may  entertain  fear  for  the  safety  of  their  in- 
comes. Moreover,  this  places  the  officers  themselves  under  constant  pres- 
sure. Those  whose  pensions  are  below  the  maximum  will  endeavor  to  have 
their  incomes  raised  through  appeals  to  the  police  commissioner,  as  well 
as  through  the  intervention  of  representatives  of  various  associations  and 
constituencies.  Such  a  plan,  in  fact,  encourages  the  organization  of  such 
constituencies.  A  partial  list  of  those  agencies  which  make  these  matters 
their  special  care  follows: 

Patrolmen's  Benevolent  Association. 

Patrolmen's  Endowment  Association. 
President,  Elroy  I.  Quick,  C.  0.  Squad. 

N.  Y.  Police  Endowment  Association. 
President,  Inspector  Donald  Grant. 

Clerical  Patrolmen's  Benevolent  Association. 

Patrolmen's  Widows'  Benevolent  Society. 
President,  Mrs.  Ellen  Joyce. 
Secretary,  Theresa  V.  McGinley. 

Veteran  Police  Association. 

Brooklyn  and  Queens  Police  Mutual  Aid  Association. 
President,  James  J.  Mannion,  173d  Precinct. 

Mutual  Police  Association. 

Directors:    Patrick  J.  McQueeny,  Patrick  H.  Walsh,  Timothy  J. 
Dorcett,  Harry  J.  Young. 

Lieutenants'  Benevolent  Association. 
President,  Richard  E.  Enright. 

Patrolmen's  Wives'  Benevolent  Association. 
President,  Mrs.  E.  J.  Finch. 

The  appeals  are  not  only  made  directly  in  person  or  by  correspond- 
ence, but  also  indirectly  by  obtaining  the  intervention  of  individuals  who 


104 

are  thought  to  have  enough  influence  with  the  police  commissioner  to 
induce  him  to  lend  weight  to  requests  and  recommendations.  The  net 
result  of  these  activities  is  that  much  valuable  time  of  the  officers  is 
wasted  attending  to  conferences  and  correspondence  in  connection  with 
these  appeals,  and  by  forcing  on  the  police  commissioner  duties  of  a 
character  which  he  should  not  perform. 

Changes  in  Administration  Prevent  Uniform  Treatment 

As  indicated  on  page  51,  since  1901,  or  during  a  period  of  13  years, 
no  less  than  eight  commissioners  have  succeeded  each  other  in  the  admin- 
istration of  the  department.  Each  of  these  commissioners  has  interpreted 
the  pension  laws  in  his  particular  way.  This  has  resulted  in  various  revo- 
cations, restorations,  increases,  and  decreases  in  pensions.  The  activities 
of  three  administrations  (McAdoo,  Bingham,  and  Waldo)  in  this  connec- 
tion have  been  presented  in  the  form  of  a  table  on  page  52.  Table  XIII 
(see  page  126)  shows  the  total  number  of  pensions  granted  to  widows 
since  1857,  and  the  proportion  of  pensions  which  were  amended  as  com- 
pared with  those  not  amended.  It  appears  that  of  2,109  widow  pensioners, 
693  or  about  33%  of  their  total  number  were  amended  and  some  were 
amended  four,  five,  and  six  times. 

Discretionary  Powers  Especially  Undesirable  When  Pension  Is 
Granted  to  Widow  op  Pensioner  Disabled  in  Performance  of 
Duty 

Uncertainty  in  the  amount  of  pensions  is  especially  vicious  in  cases 
of  the  family  of  a  member  who  lost  his  life  in  performance  of  duty.  Not 
only  has  the  police  commissioner  the  right  to  decide  whether  or  not  a  pen- 
sion shall  be  given,  but  each  of  his  successors  may  disagree  with  his  de- 
cision, and  revoke  and  amend  the  pension  according  to  his  interpretation 
of  the  law.  A  decision  as  to  whether  or  not  the  family  of  a  policeman 
who  is  killed  in  the  performance  of  duty  should  receive  a  pension,  is  a 
decision  which  should  not  be  left  to  any  man,  but  should  be  settled  as  a 
matter  of  law.  His  family  should  have  a  fixed,  indisputable  right  to  a  pen- 
sion when  the  fact  of  his  having  lost  his  life  in  the  performance  of  duty 
is  established. 

The  Principle  of  Having  Facts  Determined  by  a  Patrolman  Investi- 
gator Is  Wrong 

By  reason  of  the  fact  that  the  police  commissioner  cannot  personally 
inquire  into  all  the  facts,  he  must  content  himself  with  determining  ques- 
tions of  policy,  turning  over  questions  of  fact  to  the  pension  board,  an 
agency  established  during  the  present  administration.  This  board,  how- 
ever, bases  its  recommendations  to  the  police  commissioner  on  the  reports 
of  a  single  pension  investigator,  who  comes  into  personal  contact  with  the 
prospective  widow  pensioner,  who  is  not  required  to  appear  before  the 
pension  board  when  her  application  is  acted  upon.  This  investigator  is  a 
patrolman  of  limited  education  and  experience,  and  with  very  close  per- 
sonal ties  and  sympathies  with  those  who  apply  for  benefits.  So  long  as 
this  means  is  employed,  it  is  logical  to  assume  that  the  patrolman's  judg- 
ment, in  many  cases,  will  be  subject  to  limitations  which  will  not  make  him 
an  impartial  witness,  and  that  he  will  be  affected  by  his  personal  contact 
with  the  prospective  beneficiary  and  her  attitude  toward  him. 


105 

Chances  for  Prejudiced  Interpretation  of  Law  Because  of  Personal 
Relations  of  Beneficiaries  to  Officials  of  Pension  Board 
The  same  possibility  also  exists  in  the  board  as  at  present  constituted. 
In  cases  where  the  widow  of  a  policeman  takes  a  personal  or  active  part  in 
obtaining  a  pension,  there  is  always  left  to  her  the  chance  of  interesting 
the  members  of  the  pension  board  in  her  particular  application,  as  the 
members  of  the  board  are  also  members  of  the  police  force  and  may  be 
her  friends.  It  is  also  obvious  that  a  widow  who  is  aggressive  may  have 
an  advantage  over  her  more  retiring  sister,  whose  husband  may  have  served 
a  much  longer  period  and  may  have  been  a  more  efficient  member  of  the 
force.  With  all  the  intertwined  relations  existing  in  the  force,  the  widow 
who  knows  how  to  utilize  her  friends  to  reach  the  pension  board  may  ob- 
tain benefits  not  deserved  in  the  form  of  a  pension  or  an  increase  in  pen- 
sion, as  the  case  may  be ;  while  another  widow  who  deserves  and  is  entitled 
to  favorable  consideration  may  receive  only  a  relatively  small  pension  or 
none  at  all.  All  this  tends  to  bring  the  pension  plan  into  disfavor,  and 
shows  the  need  for  the  establishment  of  conditions  that  will  be  in  every 
way  favorable  to  the  protection  of  the  funds,  and  to  insuring  their  use  for 
the  high  purpose  for  which  they  are  created. 

Pension  of  One  Widow  Revoked  for  a  Given  Reason 

The  situations  suggested  are  not  merely  academic  portrayal.  Just 
such  results  have  obtained  in  connection  with  the  examination  of  pension 
applications  of  widows  by  the  present  pension  board ;  the  statement  on  the 
witness  stand  of  its  chairman,  Deputy  Commissioner  Dillon,  is  of  interest : l 

The  only  point  we  examined  is  whether  a  policeman  had  served 
10  years  in  the  Department,  whether  the  woman  was  his  widow,  and 
whether  she  had  been  married  to  him  during  the  time  he  was  a  mem- 
ber of  the  Police  Department.  If  the  woman  had  been  married  to 
him  during  the  time  he  was  a  policeman  and  was  of  good  moral 
character,  as  far  as  we  could  ascertain,  saw  no  reason  why  she 
should  not  get  a  pension,  and  the  pension  was  granted  to  the  amount 
of  $300  the  same  as  in  the  Fire  Department. 

One  of  the  women  pensioners  (Agnes  Lyons),  whose  pension  was 
granted  during  the  administration  of  Commissioner  Baker,  May  13,  1910, 
at  the  rate  of  $120  per  year,  applied  during  the  present  administration 
for  an  increase.  The  pension  investigator  of  the  department  made  an  ex- 
amination and  reported  that  the  petitioner  had  married  the  deceased  pen- 
sioner nine  years  and  ten  months  after  his  retirement  from  active  service. 
It  is  significant  that  this  fact  was  not  brought  to  light  until  the  widow  in 
question  applied  for  an  increase,  and  points  to  the  possibility  that  there 
may  be  a  number  of  similar  cases  among  the  1,342  widow  pensioners  now 
on  the  roll.  The  pension  under  discussion  was  revoked  on  the  recommen- 
dation of  the  pension  board,  because  "the  Police  Department  does  not 
grant  pensions  to  women  who  are  married  to  retired  members  of  the  force.'* 

Pension  of  Another  Widow  Under  Same  Conditions  Increased 

An  entirely  different  decision  was  reached,  however,  in  the  case  of 
another  widow  (Jennie  Cotter).    She  had  married  a  service  pensioner  13 

1  See  page  4333,  minutes  of  the  meeting  held  by  your  Committee  on  March  26,  1913. 


106 

years  after  his  retirement,  but  succeeded  in  obtaining  a  pension  of  $120 
per  year  on  December  9,  1909,  during  the  administration  of  Commissioner 
Baker.  During  the  present  administration,  she  applied  for  an  increase  in 
her  pension.  Although  the  fact  of  her  having  married  the  pensioner  13 
pears  after  his  retirement  was  known,  and  was  a  matter  of  record  in  the 
department,  an  increase  of  her  pension  to  $300  per  annum  was  granted. 
The  two  parallel  cases  show  not  only  the  possibility  but  also  the  fact 
that  favoritism  does  obtain  in  the  granting  of  pensions. 

The  Same  Pension  Case  Treated  in  Three  Different  Wats  by  as 
Many  Police  Commissioners 

The  pension  law,  as  previously  stated,  is  vague  and  allows  a  wide 
range  of  interpretation.  As  an  illustration  of  the  possibilities  of  variety 
in  interpretation,  as  well  as  of  the  fact  that  the  cost  of  pension  depends 
in  a  great  measure  on  the  viewpoint  taken  by  the  police  commissioner  in 
the  granting  of  pensions,  the  following  incident  is  of  interest:  On  the 
day  of  the  police  parade  in  1903,  a  sergeant  (Thomas  F.  Gilhooly)  and 
two  patrolmen  (Peters  and  Russo)  entered  a  saloon  at  the  corner  of  Sixth 
avenue  and  Third  street.  They  had  been  drinking.  While  there,  the 
sergeant  is  alleged  to  have  drawn  his  revolver  and  ordered  a  colored  man 
named  Jeff  Sanders  to  dance  to  the  music  of  his  pistol.  The  colored  man 
became  frightened,  and  jumped  behind  the  bar.  There  he  procured  a 
pistol,  and  shot  and  killed  the  sergeant  and  one  of  the  patrolmen.  Sanders 
was  tried  and  acquitted  on  the  theory  of  self-defense. 

Because  of  the  circumstances  attending  the  death  of  these  two  men, 
Commissioner  Greene,  then  at  the  head  of  the  department  (January  1, 
1903  to  January  1,  1904)  refused  a  pension  to  either  of  the  widows,  upon 
the  ground  that  they  were  not  entitled  to  it  inasmuch  as  their  husbands 
did  not  die  either  in  the  performance  of  duty  or  even  while  they  were  on 
duty,  but  while  they  were  engaged  in  a  drinking  bout,  in  violation  of  the 
rules  of  the  department.  Toward  the  latter  part  of  Commissioner  Greene 's 
term  (November  5,  1903),  however,  he  was  moved  to  grant  a  pension  of 
$300  to  the  sergeant 's  widow.  Under  the  charter  this  decision  came  within 
his  discretion,  as  the  sergeant  had  served  more  than  ten  years ;  but  in  the 
case  of  the  widow  of  one  of  the  patrolmen  (Peters) ,  the  commissioner  took 
refuge  under  the  plea  that,  since  her  husband  had  served  only  6  years  and 
7  months  in  the  department,  he  had  not  the  power  to  act  favorably  on 
her  petition. 

During  the  next  administration  (January  1,  1904  to  January  1,  1906), 
Commissioner  McAdoo  was  prevailed  upon  through  the  intervention  of 
Dock  Commissioner  M.  Featherson  on  behalf  of  the  patrolman's  widow, 
to  reconsider  her  case.  He  took  the  stand  that,  though  all  circumstances 
tended  to  show  that  the  patrolman  was  not  killed  while  in  the  actual  per- 
formance of  duty,  there  may  have  been  a  possibility  that  he  was  shot  while 
effecting  an  arrest  of  the  negro  bartender.  Therefore,  his  widow  should 
be  given  the  benefit  of  the  doubt,  and  as  a  result  she  was  granted  a  pension 
of  $300. 

Both  widows  were  drawing  $300  per  annum  until  the  present  com- 
missioner took  office.  Then  they  made  application  for  increases.  On  Aug- 
ust 21,  1912,  the  sergeant's  widow  began  to  draw  from  the  fund  at  the 
rate  of  $600,  and  the  same  amount  was  authorized  for  the  patrolman's 
widow  on  September  26,  1912. 


107 

Necessity  for  Fixed  Eules  and  Unbiased  Interpretation  op  Law 

In  the  administration  of  the  law  relating  to  pensions  to  dependents 
of  policemen,  the  importance  of  fixed  rules  and  unbiased  decisions  cannot 
be  over-emphasized.  Because  of  the  close  relations  of  prospective  benefi- 
ciaries to  the  officers  of  the  department,  it  is  clear  that  the  latter  are  in- 
competent to  administer  pension  provisions  strictly  and  justly.  The  two 
unfortunate  widows  whose  pension  history  is  mentioned  above,  of  course, 
could  not  be  held  responsible  for  the  acts  of  their  husbands.  Their  plight, 
therefore,  properly  aroused  the  sympathies  of  a  great  number  of  the  mem- 
bers of  the  force.  The  pension  board,  composed  of  members  of  the  force, 
were  in  a  sympathetic  attitude  toward  the  women,  as  might  be  expected. 
No  question  is  raised  with  respect  to  the  propriety  of  their  sympathies, 
but  the  wisdom  of  present  provisions  of  law  and  of  the  present  means  for 
administering  a  fund  that  should  command  the  respect  if  not  the  rever- 
ence of  every  citizen  is  challenged. 


APPENDIX  TO  PART  I 


110 


Table  I. — Showing  Changes  in 


Act 

Beneficiaries  and 

Conditions  Entitling 

to  Pensions 

1860, 

Chap. 

259 

1864, 

Chap. 

403 

1867, 

Chap. 

806 

1868, 
Chap. 
535 

1870, 

Chap. 

383 

1871, 

Chap. 

126 

1878, 
Chap. 
335 

1878, 

Chap. 

389 

Disability 

2  $150 

2  $150 

2  $300 

2  $300 

2  $300 

S1A-V2 

After  10  years 

2  150 

2 150 

2  150 

2  300 

2  300 

$300 
400 

After  15  years 

After  25  years 

After  30  years 

*K-H 

Sixty  years  of  age 

Chief  or  Superintendent 

•» 

Deputy 

Chief  Inspector 

Inspector 

Captain 

2M 
2K 

S1A 

21A 

Sergeant 

Detective-Sergeant 

Patrolman 

2  400 

2  400 

21A 
*lA 

2  300 
2  300 

Surgeon 

21A 

Clerk' 

Widow,  10  years 

2 150 
2 150 

2  150 
2  300 

2  300 
2  300 

2  300 
2  300 

Widow,  killed 

2 150 

Children,  10  years 

2 150 
2 150 

2 150 
2  300 

2  300 
2  300 

2  300 
2  300 

2  300 
2  300 

Children,  killed 

2 150 

Parents  of  policeman  killed  or 

1  From  the  report  of  the  Pension  Committee  of  the  Citizens'  Union  of  the  City  of  New  York  (January, 
ment  since  1882. 


Ill 


Police  Pension  Rates,  1860  to  1907 l. 


1882, 
Chap. 
410, 
Sec. 
306-7 

1882, 

Chap. 

330 

1885, 

Chap. 

364 

1887, 

Chap. 

574 

1890, 

Chap. 

531 

1892, 

Chap. 

52 

1893, 

Chap. 

326 

1894, 

Chap. 

536 

1897, 
Chap. 
378, 
Sec. 
354-5 

1904, 

Chap. 

512 

1905, 

Chap. 

516 

1907, 

Chap. 

445 

•H-H 

$300 
400 

•H-H 

H-H 

H-H 

H-H 

H-H 

2  $300 
300-600 

H-H 

H-H 

H-H 

H-H 

3ilA 

3ilA 

If  55 
yrs43^ 

If  55 
yrs.4M 

*H-H 

iilA 

liV2 

3ilA 
$2,500 

$3,000 
2,500 

2  1,500 

$2,500 

$3,000 

2,500 
1,750 

2 1,200 

1,750 

1,750 
1,375 

1,750 
1,375 
1,000 
1,000 

1,000 
1,000 

(B) 

300 
300 

2  300 
2  300 

300 
300 
2  500 
2  300 
2  300 
2  500 

300 

2  300 
2  300 
2  600 
2  300 
2  300 
2  600 

$300-600 
300-600 

2  $300 
2  600 

2  $300 

2  600 

2  600 

2  600 

2  600 

300 
»300 

2  300 

2  300 
2  300 

2  300 
2  600 

2  600 

2  600 

2  600 

2  600 

2  600 

2  300 

2  600 

2  600 

1911). 


*  Not  to  exceed.    *  Not  to  exceed  $1,000. 


*  Not  less  than. 


6  Clerks  not  eligible  for  retire- 


112 


Table  II. — Showing  Changes  in  Salaries  of  the  Uni 


Act 

Chief 

or 
Super- 
intend- 
ent1 

Chief 
Inspector 

or 
Deputy 

Chief1 

Deputy 
Inspec- 
tor1 

Captain 

Lieu- 
tenant 

Sergeant* 

Detective 
Ser- 
geant* 

Rounds- 
man* 

1857  C569.. 
1860  C259.. 
1864  C403.. 
1866  C861 . . 
1880  C521 . . 
1882  C410.. 

1884  C182.. 

1885  C555.. 

1886  C450.. 

1887  C572.. 

1888  C137.. 
1888  C420.. 
1894  C741 . . 
1897  C378.. 
1901  C466.. 
1905  C637.. 
1907,  Apr.  19 

1909,  Dec.  19 

1910,  July  1 . 
1912 

$3,000 
5,000 

'  7,500 

'  6,666 

Aboi.' 

$2,000 

5,000 
Aboi.' 

$2,000 

2,500 
3,500 
3,000 

'  3,500 
Aboi.* 

$1,200 

1,500 
2,000 
1,800 

2,750 



$2,666 
2,250 

$900 

1,200 
1,600 
1,250 

1,600- 
2,200 

'  2,666 

'  1,566 
1,750 

$1,600- 
2,200 

'  2,666 

Aboi.' 



$1,566 
Aboi.' 

1  Abolished  chief  1901,  deputy  chief  1907,  deputy  inspector  1907,  doorman  1912. 

■  April  19,  1907,  sergeants  and  detective-sergeants  made  lieutenants;  roundsmen  made  sergeants. 

*  1880  salary  scale  applied  only  to  appointments  made  after  May  29,  1880. 

«  A  captain  acting  as  inspector  receives  $750  per  annum  additional  compensation  and  is  eligible  for  retire 


113 


formed  Force  of  the  Police  Department,  1857  to  1912. 


Patrolman 

Doorman1 

Matron 

1st  Yr. 

2dYr. 

3dYr. 

4th  Yr. 

1st  Half 
5th  Yr. 

2d  Half 
5th  Yr. 

Over 
5Yrs. 

Surgeon 

$800 

$800 

$800 

$800 

$800 

$800 

$800 

$700 

$1,500 

1,000 

1,200s 

800 

1,000 

1,2003 

800 

1,000 

1,200s 

900 

1,000 

1,200* 

900 

1,000 
1,200s 
1,000 

1,000 
1,200s 
1,000 

1,000 
1,200s 
1,000 

800 
900 

1,800 
2,250 
1,500 

1,000 

1,100 

1,200 

1,200 

1,200 

1,200 

1,200 

1,000 

2,250 

1,000 
800 

1,150 
900 

1,250 
1,000 

1,300 
1,150 

1,300 
1,250 

1,300 
1,350 

1,400 
1,400 

Abol. 

$1,000 

3,000 
3,500 

meat  at  $1,750  per  annum  if  he  has  acted  as  inspector  not  less  than  ten  years. 


114 


Table  III. — Showing  the  Annual  Pension  Payments  and  Revenues  of  the  Police 
Pension  Fund  from  1857  to  1912. 


Years 


1857. 
1858. 
1859. 
1860. 
1861. 
1862. 
1863. 
1864. 
1865. 
1866. 
1867. 
1868. 
1869. 
1870. 
1871. 
1872. 
1873. 
1874. 
1875. 
1876. 
1877. 
1878. 
1879. 
1880. 
1881. 
1882. 
1883. 
1884. 


Pension 
Payments 


$30.00 

240.00 

809.31 

1,425.75 

2,133.32 

2,642.32 

3,877.49 

6,680.72 

7,332.50 

7,870.54 

13,099.63 

19.231.64 

26;223.83 

45,746.69 

56,680.95 

61,422.72 

73,224.17 

61,681.03 

44,357.57 

76,784.98 

67,401.78 

80,230.28 

97,822.63 

105,183.65 

116,488.91 

142,795.17 

187,012.35 


Total 

Revenues 

as  Provided 

by  Law1 


$423.10 

2,200.00 

3,646.37 

5,021.08 

10,050.15 

10,011.57 

8,833.13 

19,495.48 

26,479.19 

44,465.30 

31,209.83 

32,100.11 

36,124.78 

73,519.81 

58,473.56 

68,630.64 

56,113.80 

80,776.92 

65,376.00 

60,909.16 

64,939.55 

91,715.29 

114,293.55 

113,869.56 

117,696.90 

86,823.53 

81,319.71 

183,545.49 


Years 


1885 
1886 
1887 
1888 
1889 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 
1903 
1904 
1905 
1906 
1907 
1908 
1909 
1910 
1911 
1912 


Pension 
Payments 


$248,023.73 

304,905.48 

368,288.39 

413,889.40 

424,760.29 

451,993.58 

480,510.34 

509,286.80 

563,372.42 

595,592.34 

636,842.33 

671,754.76 

686,640.75 

893,449.75 

880,330.21 

888,029.48 

909,173.65 

953,914.02 

1,075,999.37 

1,162,775.38 

1,302,309.21 

1,409,242.10 

1,510,322.61 

1,574,544.29 

1,639,944.18 

1,726,918.77 

1,855,483.13 

2,094,866.58 


Totals 

Revenues 

as  Provided 

by  Law  1 


$232,212.06 

269,783.60 

385,071.23 

294,829.54 

417,152.41 

516,236.79 

416,810.88 

522,742.82 

608,008.67 

562,112.70 

618,661.14 

1,034,058.78* 

709,752.60 

846,991.13 

867,996.56 

967,473.41 

826,678.23 

940,205.57 

910,552.33 

884,696.11 

904,861.46 

1,057,556.84 

1,085,118.03 

1,254,973.63 

1,148,331.28 

1,068,158.80 

1,022,929.19 

961,194.82 


1  Not  including  direct  budget  appropriations  and  special  revenue  bonds  for  the  purpose  of  meeting  the 
annual  deficits  of  the  fund  as  follows:  1904,  $197,000.00;  1905,  $193,946.26;  1906,  $400,000.00;  1907,  $400.- 
000.00;   1908,  $400,000.00;   1909,  $400,000.00;   1910,   $600,000.00;   1911,  $850,000.00;   1912,   $1,135,188.22. 

*  The  sudden  increase  in  1896  is  due  to  the  fact  that  a  mistake  was  made  in  the  estimate  of  1895  for  the 
appropriation  for  salaries  of  the  uniformed  force.  The  resulting  large  amount  of  unexpended  balance  of 
appropriation  was  turned  over  to  the  fund  in  1896. 


115 


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116 


Table  V. — Detailed  Statement  of  Annual  Receipts  of  the 


Revenue 

1901 

1902 

1903 

1904 

1905 

$206,671.54 

50,000.00 
329,900.99 

180,164.96 
216.12 
1,212.95 
3,764.67 
9,980.00 
2,612.50 
25,956.00 

$210,441.62 

175,007.53 . 
315,050.89 

170,112.75 

460.50 

1,240.35 

10,771.82 

11,180.00 

3,330.00 

26,458.00 

15.00 

13,879.64 

1,707.97 

549.50 

$215,370.67 

97,022.66 
314,599.77 

217,805.06 

436.51 

2,054.59 

7,495.38 

11,250.00 

1,737.50 

26,100.00 

42.50 

12,082.49 

4,555.20 

$218,771.55 

50,000.00 
379,189.42 

174,602.70 

307.51 

3,052.00 

5,256.80 

11,775.00 

1,722.50 

27,172.00 

242.00 

10,132.76 

2,471.87 

$201,613.59 

20,053.67 
430,000.00 

188,068.17 

563.86 

25.75 

8,029.95 

13,490.00 

2,897.50 

26,058.00 

141.00 

6,750.90 

5,941.57 

1,227.50 

2 — Miscellaneous  revenues: 

Unexpended  balances  of  appro- 

Sick,  absence  and  fine  deductions 
(net)' 

Property  clerk's  returns 

Masquerade  ball  permits 

Pistol  permits 

Steam  boiler  inspections 

Interest 

15,099.25 
1,099.25 

Miscellaneous5 

Total 

$620,006.69 

$729,763.95 

$695,181.66 
$100,000.00 

$665,924.56 

$144,750.00 
197,000.00 

$703,247.87 

$138,606.88 
193,946.26 

3 — Sale  of  bonds  belonging  to  the  fund1 

5 — Special  revenue  bonds  to  meet  de- 

$826,678.23 

$940,205.57 

$1,010,552.33 

$1,226,446.11 

$1,237,414.60 

Pensions  credited  back 

$3,138.45 
27,684.75 

$3,249.96 
16.932.29 

$3,114.78 
19,833.16 

$5,290.50 
46,344.52 

$5,529.34 
30,077.34 

$857,501.43      £960.387.82 

$1,033,500.27    SI  .278.081.13 

$1,273,021.28 

1  Compiled  from  the  annual  reports  of  the  police  pension  fund  as  published  in  the  City  Record. 

J  On  January  1,  1901  the  capital  of  the  fund  consisted  of  various  bonds  amounting  to  $386,500.00.     The 

*  The  figures  in  this  column  were  obtained  by  deducting  from  the  gross  amounts  as  reported  in  the  annual 
moneys  disbursed  for  stationery  and  sundries,  the  exact  amount  of  which  was  determined  from  a  report  of 
later  years  the  amount  spent  for  stationery  and  sundries  was  estimated  at  $1,000.00  per  year  and  taken  into 

*  As  reported  in  the  annual  reports  of  the  police  pension  fund,  less  the  amounts  spent  for  stationery  and 
obtained  from  a  report  of  the  commissioner  of  accounts  up  to  and  including  1908.    For  later  years  these  amounts 

6  This  column  includes:  Deposits  on  old  special  shields;  portions  of  fines,  agricultural  law;  sale  of  photo- 
collections  from  smelting  and  refining  works;  rebate  on  bond  of  treasurer  and  trustee  of  fund;  subpoena  money. 


Table  VI. — Analysis  of  Annual  Net  Receipts  of  the 


Year 

Total 

1 
2%  Salary  Deduction 

2 

Miscellaneous  Revenues 

Amount 

Per  cent 

Amount 

Per  cent 

1901 

$826,678.23 
940,205.57 
1,010,552.33 
1,226,446.11 
1,237,414.60 
1,457,556.84 
1,485,118.03 
1,654,973.63 
1,548,331.28 
1,668,158.80 
1,872,929.19 
2,096,383.04 

$206,671.54 
210,441.62 
215,370.67 
218,771.55 
201,613.59 
251,083.07 
242,332.19 
253,134.30 
241 ,333.95 
295,583.26 
260,957.48 
281,008.29 

25.0 
22.4 
21  3 
17.8 
16  3 
17.2 
16.4 
15.3 
15  6 
17.7 
13.9 
13.5 

$620,006.69 
729,763.95 
695,181.66 
665,924.56 
703,247.87 
806,473.77 
842,785.84 

1,001,839.33 
906,997.33 
772,575.54 
761,971.71 
680,186.53 

76.0 

1902 

77.6 

1903 

68.8 

1904 

54.3 

1905 

56.8 

1906 

55  3 

1907 

56.7 

1908 

60.6 

1909 

58.6 

1910 

46.3 

1911 

1912 

1913 

40.7 
32.4 

Total  1901-1912. 

$17,024,747.65 

$2,878,301.51 

16.8 

$9,186,954.78 

54.0 

1  For  detailed  statement  of  revenues  consult  Table  V. 


117 


Police  Pension  Fund  for  the  Years  1901  to  19121 


1906 

1907 

1908                  1909 

1910 

1911 

1912 

T*f  1 1901-'12 

$251,083.07 

101,653.85 

430,000.00 
206,537.05 

365.03 

1,490.00 

10,316.34 

17,570.00 

2,415.00 

29,158.04 

137.50 

2,474.52 

4,356.44 

$242,332.19 

165,997.51 

430,000.00 
177,980.57 

448.12 

673.56 

12,003.45 

17,020.00 

1,937.50 

29,101.06 

52.50 

3,637.45 

3,532.12 

402.00 

$253,134.30     $241,333.95 
333,845.22       250.84fi.43 

$295,583.26 

88,367.99 

430,000.00 
192,907.58 

397.25 

1,095.84 

7,698.07 

12,940.00 

1,230.00 

27,014.00 

176.50 
4,818.98 
5,578.06 

351.27 

$260,957.48 

2,955.43 

430,000.00 
265,751.74 

419.50 

324.76 

9,905.28 

12,025.00 

6,642.50 

25,916.00 

12.50 

5,034.58 

2,868.45 

115.97 

$281,008.29 

$2,878,301.51 
1,335,750.29 

430,000.00 
172,118.72 

498.00 

1,020.50 

7,958.39 

15,935.00 

1,902.50 

30,382.00 

207.50 
2,659.14 
5,149.86 

162.50 

430,000.00 
155,070.02 

663.18 

6,136.00 

12,896.25 

14,615.00 

1,247.50 

28,216.02 

202.50 

3,409.30 

3,695.13 

430,000.00 
190,296.18 

255.50 

100.00 

8,626.29 

11,240.00 

3,552.50 

25,132.00 

5.00 

2,799.43 

7,942.53 

237.10 

4,778,741.07 
2,291,415.50 

5,031.08 

18,426.30 

104,722.69 

159,020.00 

31,227.50 

326,663.12 

1,234.50 

82,778.44 

47.799.20 

4,145.09 

$806,473.77 

$842,785.84 

$1,001,839.33 
$400,000.00 

$906,997.33 
$400,000.00 

$772,575.54 

$761,971.71 

$680,186.53 

$9,186,954.78 
383,356.88 

$400,000.00 

$400,000.00 

$600,000.00 

$700,000.00 
150,000.00 

$872,802.70 
262,385.52 

$4,163,748.96 
412,385.52 

$1,457,556.84 

$1,485,118.03 

$1,654,973.63 

$1,548,331.28 

$1,668,158.80 

$1,872,929.19 

$2,096,383.04 

$17,024,747.65 

$67,188.55 
22,321.45 

$13,090.40 
18,737.13 

$6,960.03 
35,611.60 

$6,524.28 
26,171.19 

$5,098.93 
24,344.49 

$4,785.01 
23,298.16 

$7,222.30 
18,109.55 

$131,192.53 
309,465.63 

$1,547,066.84 

$1,516,945.56 

$1,697,545.26 

$1,581,026.75 

$1,697,602.22 

$1,901,012.36 

$2,121,714.89 

$17,465,405.81 

same  were  sold,  as  shown  in  this  table  in  1903,  1904  and  1905,  to  cover  deficiencies  in  the  fund. 

reports,  the  refunds  of  sick  time,  etc.,  made  during  the  corresponding  years.     The  latter,  however,  includes 

the  commissioner  of  accounts  on  the  pension  fund  providing  this  information  up  to  and  including  1908.     For 

consideration  in  obtaining  the  net  amounts  of  "sick,  absence  and  fine  deductions." 

sundries  and  originally  included  in  this  item.     The  actual  amounts  spent  for  stationery  and  sundries  were 

were  approximated  at  $1,000.00  per  year. 

graphs,  budget  exhibit;  state  department  of  agricultural,  agricultural  law  fine;  sale  of  manure  in  precincts; 


Police  Pension  Fund  for  the  Years  1901  to  19121 


3 

Sale  of  Bonds 

4 
Direct  Appropriation 

5 
Special  Revenue  Bonds 

Amount 

Per  cent 

Amount 

Per  cent 

Amount 

Per  cent 

16^6 

15.7 
27.5 
26.9 
24.2 
25.8 
36.0 
37.4 
41.6 

9 
11 
11 

.9 
.2 

.2 

I 
IS 

$100,000.00 
144,750.00 
138,606.88 

$197,000.00 
193,946.26 
400,000.00 
400,000.00 
400,000.00 
400,000.00 
600,000.00 
700,000.00 
872,802.70 

1,264,538.342 

$150,000.00 
262,385.52 

.0 

5 

$383,356.88 

2 

.3 

$4,163,748.96 

24.5 

$412,385.52 

2 

.4 

t  Not  included  in  total. 


118 


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119 


Table  VIII. — Showing  the  Number  of  Members  on  the  Pension  Roll  in  February, 
1913,  Drawing  Each  Specified  Amount  of  Pension.1 


Amount 


Number  of 
Pensioners 
Receiving 


Per  Cent,  of 
Total 


Under  $100 

$100  and  under 

200  and  under 

300  and  under 

400  and  under 

500  and  under 

600  and  under 

700  and  under 

1,000  and  under 

1,500  and  under 

2,000  and  under 

2,500  and  under 

3,000  and  over. 


$200. 

300. 

400. 

500. 

600. 

700. 
1,000. 
1,500. 
2,000. 
2,500. 
3,000. 


6 

1 

17 

75 

91 

189 

316 

1,400 

366 

18 


Total. 


2,484 


.2 

.1 

,7 

3.0 

3.6 

7.6 

12.7 

66.4 

14.7 

.7 


.2 
.1 


100 


i  Compiled  by  hand  tabulation  from  card  roster  of  pensioners  in  the  Pension  Bureau  of  the  Polio* 
Department. 


Table  IX. — Showing  the  Number  of  Widows,  Children  and  Dependent  Parents 
on  the  Pension  Roll  in  February,  1913,  Drawing  Each  Specified  Amount 
of  Pension.1 


Amount 

Total 

Widows 

Chil- 
dren, 
Num- 
ber 

Dep. 
Parents, 

Num- 
ber 

Per  Cent, 
of  Total 

Num- 
ber 

PerCent. 
of  Total 

Num- 
ber 

Under  $100 

11 

98 

102 

79 

81 

1,026 

1 

3 

15 

1 

.8 
6.9 
7.2 
5.6 
5.7 
72.4 

.1 

.2 
1.0 

.1 

10 

20 

8 

12 

1 

$100  and  under  $150 

76 

93 

66 

81 

1,004 

1 

3 

13 

1 

5.7 

7.0 

4.0 

6.0 

75.8 

.1 

.3 

1.0 

.1 

2 

150  and  under    200 

1 

200  and  under   250 

1 

250  and  under    300 .  . 

300  and  under    400 

20 

2 

400  and  under    500 .  . 

500  and  under    600 . . . 

600  and  under    700 

2 

700  and  over 

1,417 

100.0 

1,338 

100.0 

70 

9 

'Compiled  by  hand  tabulation  from  card  roster  of  pensioners  in  the  Pension  Bureau  of  the  Polie* 
Department. 


120 


Table  X. — Comparative  Strength  of  the  Uniformed  Police  Force  in 


Year 


Total 

Inspec- 

Sur- 

Cap- 

Lieu- 

Sar- 

Patrol- 

Door- 

tors 

geons 

tains 

tenants2 

geants* 

men 

men* 

7,510 

14 

21 

77 

585 

335 

6,222 

183 

7,673 

12 

21 

81 

519 

394 

6,393 

176 

8,175 

15 

23 

85 

674 

425 

6,682 

188 

8,272 

15 

23 

89 

673 

427 

6,776 

189 

8,859 

16 

23 

85 

662 

578 

7,225 

189 

8,873 

14 

23 

92 

661 

578 

7,232 

189 

9,461 

19 

25 

90 

625 

584 

7,839 

194 

10,012 

17 

25 

91 

606 

558 

8,439 

193 

10,162 

19 

24 

87 

619 

585 

8,571 

193 

10,177 

18 

25 

87 

614 

568 

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194 

10,207 

19 

25 

97 

624 

586 

8,585 

191 

10,371 

18 

25 

97 

588 

639 

8,923 

1901 
1902 
1903 
1904 
1905 
1906 
1907 
1908 
1909 
1910 
1911 
1912 


1  Compiled  from  annual  reports  of  the  Police  Department. 

*This  column  contains  the  number  of  "sergeants"  and  "detective-sergeants"  up  to  and  including  1906. 
'This  column  contains  the  number  of  "roundsmen"  up  to  and  including  1906.  In  1907  this  title  was 
4  The  rank  of  "doorman"  was  abolished  on  April  16,  1912,  and  193  doormen  became  patrolmen. 


121 


Its  Several  Grades  at  the  Close  op  Each  Specified  Year1 — 1901  to  1912. 


Matrons 

Supt. 
of 

Asst. 
Supts.of 
Tele- 
graph 

Chief 
Line- 

Linemen 

Boiler 
In- 

Supt. 
of 

Battery- 

Chap- 

Mes- 

Tele'gh 

man 

spectors 

Boilers 

man 

lains 

senger 

56 

2 

6 

5 

1 

1 

1 

61 

2 

6 

4 

1 

1 

1 

70 

2 

.... 

6 

3 

1 

67 

2 

6 

2 

1 

69 

2 

6 

2 

69 

1 

7 

2 

'4' 

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1 

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2 

4 

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•  •  • . 

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2 

4 

69 

1 

6 

2 

4 

70 

2 

6 

2 

4 

69 

2 

5 

2 

70 

2 

5 

2 

» 

In  1907  these  titles  were  changed  to  "lieutenants.' 
changed  to  "sergeant." 


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124 


Table  XII. — Activities  of  the  Various  Police  Administrations  from  1857  to 


Administration 

Totals 

Mem 

Title 

Term 

5 

E 

C 

6 
M 

1 
I 

d 
1— i 

1 

a 

E 

0 

0 

Q 

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B 

O 
> 
n 

3 

0 

E 
O 

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Met'p'tan  police 
Municipal  police 
Greater    N.    Y. 
police  boards . 
Com.  Murphy. . 
Com.  Partridge. 
Com.  Greene. . . 
Com.  McAdoo . . 
Com.  Bingham . 

Com.  Baker 

Com.  Cropsey . . 
Com.  Waldo.... 
Administration 

1857  to  1869 
1870  to  1897 

Jan.    1, 1898  to  Feb.  22, 1901 
Feb.  22, 1901  to  Jan.     1, 1902 
Jan.     1, 1902  to  Jan.     1, 1903 
Jan.     1, 1903  to  Jan.     1, 1904 
Jan.     1, 1904  to  Jan.     1, 1906 
Jan.     1, 1906  to  July    1, 1909 
July    1, 1909  to  Oct.  20, 1910 
Oct.  20, 1910  to  May  23, 1911 
May  23, 1911  to  Febru'y  1913 

23 
2,349 

387 
138 
227 
273 
627 
1,140 
460 
168 
879 

12 

"3 

"i 

"i 
1 
5 

"4 

3 
64 

32 
16 
20 
18 

140 
87 
73 
17 

371 

17 

ii 

"2 
1 

"2 

95 

2 

1 
1 

"6 

4 
2 
8 
1 
1 

85 
2 
2 

38 

7 

8 
1,466 

150 
62 
134 
199 
389 
833 
299 
107 
609 

4 

2 

i 

Total 

6,683 

15 

858 

115 

156 

4,260 

3 

1  Compiled  by  hand  tabulation  from  eard  roster  of  pensioners  in  the  Pension  Bureau  of  the  Police 
3  As  a  unit  is  considered  one  or  more  children  of  a  member  under  the  same  guardian. 


125 


1913,  AS  EXPRESSED  BY  THE  NUMBER  OP  PENSIONS  GRANTED,  TERMINATED  OR  AMENDED1 


bers 

Widows 

Children* 

Dependent  Parents 

| 

| 

2 

1 

1 

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1 

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3 

29 

11 

6 

132 

... 

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9 

202 

23 

4 

35 

2 

1 

69 

1 

14 

2 

7 

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5 

84 

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11 

8 

9 

4 

5 

72 

1 

13 

1 

2 

. 

27 

•  •  • 

214 

1 

110 

1 

24 

3 

1 

12 

4 

2 

239 

3 

71 

90 

74 

66 

4 

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9 

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141 

•  •  • 

59 

13 

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57 

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20 

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260 

3 

347 

... 

12 

10 

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23 

... 

3 

1 

9 

... 

1 

5 

•  • 

7 

... 

1 

3 

1 

... 

5 

... 

... 

... 

136 

6 

5 

2,109 

12 

699 

106 

110 

302 

19 

3 

40 

12 

4 

1 

Department. 


126 


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128 


Table  XTV — Showing  Ten  Retired  Policemen  Who  Dkaw 


Nature 

of 

Retirement 

Name 

Rank 

Life  of 
Pension 

Rate 

of 

Pension 

Amount 
Drawn  in 
Pensions 

Pres- 
ent 
Age 

Yrs. 

Mos. 

Disability. . . 

Henry  Hahn .... 

Lieutenant. . 

5 

7 

$1,000 

$5,583.33 

55 

Disability.  .  . 
Disability. . . 

Jas.  C.  Mont- 
John  S.  Clancy . . 

Patrolman . . 
Patrolman . . 

17 
5 

10 

700 
358 

12,483.33 
1,790.00 

65 
39 

Disability.  .  . 

JohnT.McCarthy 

Patrolman . . 

2 

6 

700 

1,750.00 

56 

Disability.  .  . 

Wm.  McCarthy. 

Patrolman . . 

2 

8 

700 

1,866.66 

51 

Service  and 
veteran — 

Wm.  H.  Lake . . . 

Patrolman . . 
Roundsman. 

16 
20 

8 

700 
650 

11,666.66 
13,000.00 

66 
68 

Service 

David  W.Erskine 

Patrolman . . 

21- 

600 

12,600.00 

70 

Service 

Alex.  Price 

Roundsman. 

18 

10 

650 

12,241.66 

68 

Service 

Patrick  J.  Lane . 

Lieutenant. . 

2 

7 

1,125 

2,906.25 

61 

$75,887.89 

1  Except  Henry  Hahn  who  ia  employed  as  messenger  in  State  Comptroller's  office,  165  Broadway,  New  York 
*  Does  not  include  fees  earned  by  City  Marshal. 


129 


Pensions  and  Also  Salaries  in  Other  City  Departments.1 


Where 
at  Present 
Employed 

In 

what 

Capacity 

L'gth  of  Time 
E'pl'yed  with 

Other 
Departments 

Rate  of 
Present 

Pay 

per 
Annum 

Amount 

Drawn 

in 

Sala- 
ries 

Total 
Drawn  in 
Pensions 

and 
Salaries 

Amount  of 

Pensions 

Drawn 

while  in 

Employ  of 

Yrs. 

Mos. 

Other  City 
Depts. 

State  comptroller's 

office,  N.  Y.  C 

City  court 

Messenger 

Court  At- 
tendant . 
Clerk.... 

Court  At- 
tendant . 

Court  At- 
tendant . 

Examiner. 

Clerk.... 

City  Mar- 
shal. . .  . 

Section 
Foreman 

Court  At- 
tendant . 

2 
2 
1 

1 

2 

16 
8 
9 

17 
2 

6 
5 

6 

6 

7 

10 
6 
6 

$1,500 

1,200 

600 

1,500 

1,200 

2,400 

2,100 

Paid 

by  fees 

1,200 

1,500 

$3,000 

3,000 

850 

2,250 

3,000 

29,375 
16,800 

19,200 
3,750 

$8,583.33 

15,483.33 

2,640.00 

4,000.00 

4,866.66 

41,041.66 
29,800.00 

31,441.66 
6,656.25 

$2,000.00 

1,750.00 

507.17 

Tenement  house  dept. 
— bureau  of  admin- 
istration   

Court  of  special   ses- 
sions— bureau  of  ex- 
amination   

1,050.00 

City  magistrate's  court 
first  division — bureau 
of  administration . . . 

Corporation    counsel's 
office — main  office . . 

Municipal  civil  service 

Office  462  E.  158th  St.. 

Street  Cleaning  Dept . . 

Court  of  special  ses- 
sions   

1,750.00 

11,608.33 
5,200.00 
5,900.00 

11,375.00 
2,812.50 

$81,225 

$144,512.89 

$43,953.00 

City. 


130 


Table  XV. — Showing  the  "Expectation  op  Life"  of  Regular  Pensioners  and  of 

Disability  Pensioners  (Monthly  Payments1)  of  the  New  York 

City  Police  Pension  Fund. 


Expectation 

Age 

Expectation 

Age 

Disability 

Regular 

Disability 

Regular 

Pensioners 

Pensioners 

Pensioners 

Pensioners 

20 

4.40 

56 

13.47 

13.26 

21 

4.89 

57 

12.99 

12.86 

22 

5.45 

58 

12.50 

12.46 

23 

6.07 

59 

12.01 

12.06 

24 

6.78 

60 

11.52 

11.66 

25 

7.54 

61 

11.04 

11.26 

26 

8.35 

62 

10.57 

10.87 

27 

9.21 

63 

10.11 

10.47 

28 

10.11 

64 

9.66 

10.09 

29 

11.13 

65 

9.21 

9.71 

30 

12.06 

66 

8.78 

9.32 

31 

12.96 

67 

8.36 

8.95 

32 

13.82 

68 

7.94 

8.58 

33 

14.64 

69 

7.54 

8.22 

34 

15.38 

70 

7.15 

7.87 

35 

16.04 

71 

6.76 

7.53 

36 

16.63 

72 

6.38 

7.20 

37 

17.11 

73 

6.02 

6.88 

38 

17.49 

74 

5.67 

6.57 

39 

17.78 

75 

5.33 

6.25 

40 

17.97 

76 

4.99 

5.94 

41 

18.09 

77 

4.67 

5.65 

42 

18.12 

78 

4.35 

5.36 

43 

18.08 

79 

4.04 

5.07 

44 

17.97 

80 

3.75 

4.81 

45 

17.80 

81 

3.46 

4.55 

46 

17.57 

82 

3.19 

4.30 

47 

17.28 

83 

2.93 

4.05 

48 

16.96 

84 

2.67 

3.79 

49 

16.61 

85 

2.42 

3.53 

50 

16.22 

86 

2.16 

3.31 

51 

15.80 

87 

1.94 

3.05 

52 

15.36 

88 

1.75 

2.82 

53 

14.90 

89 

1.58 

2.61 

54 

14.43 

90 

1.43 

2.42 

55 

13.95 

13.67 

i  By  "monthly  payments"  is  meant  that  the  expectation  shown  is  the  curtate  expectation  of  life  plus  the 
■umber  of  complete  months  lived  in  the  year  of  death.  This  is  greater  than  the  curtate  expectation  and  slightly 
less  than  the  complete  expectation  of  life. 


132 


Table  XVI. — Showing  the  Total  Annual  Cost  (Salary  and  Pension)  op  the 


Schedule 
Num- 

Name 

Rank 
at  Date 

of 
Retire- 
ment 

Active  Pay 

ber 

Years 

Months 

Amount 

51 

Surg 

Capt 

Lt.  (Serg) 
Ptl 

34 
25 
38 

27 
38 

10 
9 
6 

11 
9 

$69,580 
65,250 
97,716 
21,845 
49,850 

44 

Marsh,  Edward  T.  T 

48 

McLaughlin,  Wm.  W 

32 

85 

133 


Services  of  Five  Members  of  the  Force  Retired  on  Service  Pension. 


Amount 

Average 

Pension  Drawn 

Future  Pension 

Contri- 

Cost to 

Total 

buted 

the  City 

Pay  and 
Pension 

at 

2% 

Per 
Year  of 

Years 

Months 

Amount 

Present 
Age 

Expect, 
of  Life 

Rate 

Amount 

Per 

Annum 

Active 
Service 

20 

3 

$50,625 

81 

4.55 

$2,500 

$11,375 

$131,580 

$1,392 

$3,738 

8 

7 

12,875 

70 

7.87 

1,500 

11,805 

89,930 

1,305 

3,442 

5 

7 

13,958 

66 

9.32 

2,500 

23,300 

134,974 

1,954 

3,455 

12 

12,000 

67 

8.95 

1,000 

8,950 

42,795 

437 

1,517 

1 
t 

4 

933 

65 

9.71 

700 

6,797 

57,580 

997 

1,460 

134 

Table  XVII. — Showing  the  Total  Annual  Cost  (Salaet  and  Pension)  of 


Schedule 
Num- 
ber 


Name 


Rank 
at  Date 

of 
Retire- 
ment 


Active  Pay 


Years 


Months 


Amount 


5 

49 
50 
78 
12 
14 
37 
33 
11 
80 

2 
89 
86 
87 

3 
36 
72 
19 

7 
81 
47 
52 
30 

1 
38 
26 
29 
25 
15 
27 
28 
24 
20 
76 
71 
13 
34 
73 
55 

8 
82 
83 
90 

9 
88 
91 
94 
40 
17 
74 
75 
77 


Mallam,  Benjamin . . 
McKenna,  John  J . . 
O'Keefe,  Patrick  A. 
WiUiamsj  Geo.  W.  . 

Chandler,  Alex 

Lussier,  John  J 

Armstrong,  Jas.  M . 
Bergen,  Wm.  C . . . . 
Devanney,  James . . . 

Eckoldt,  John 

Isenberg,  David .... 
Lawlor,  Michael  E. . 
Leary,  Frank  R . . . . 
Lyne,  Christopher  J 

Riley,  Jas.  J 

Rosenfeld,  Morris. . 
Summersgill,  Robert 
Tennant,  John  A . . . 
Vondrean,  Eustace. 
Winters,  Wm.  F.... 

Fluhrer,  Wm.  F 

Sullivan,  John  D . . . 

Burns,  Joseph 

Tighe,  Robt.  A 

Braun,  August 

Charlton,  Robt 

Daly,  Daniel 

Ennis,  Wm.  J 

Fitzgerald,  Peter .  . . 

Maher,  John  L 

Murray,  Henry  T .  . 
Nolan,  Michael.  .  .  . 
Quigley,  Daniel  S . . . 

Ryan,  Jos.  F 

Sheridan,  Wm.  P . . . 
Taggart,  Archibald . 
Farrell,  Daniel  J. . . 
Stoney,  Frank  C .  .  . 

Bach,  Emil 

Devlin,  Peter 

Faney,  Patrick 

Foley,  John  F 

GaUigan,  Jas.  T 

Hayes,  Joseph  P .  .  . 

Lynch,  Wm.  J 

Maclsaac,  John  D . . 
McKenna,  John .... 

Noll,  George 

Reilly,  James 

Schmidt,  Joseph .... 
Sullivan,  Patrick.  . . 
Wall,  James 


Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Lt... 
Lt... 
Ptl.. 
Ptl. . . 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Surg. 
Surg. 
Capt 
Capt 
Lt... 
Lt... 
Lt... 
Lt... 
Lt... 
Lt... 
Lt... 
Lt... 
Lt... 
Lt... 
Lt... 
Lt... 
Sergt 
Sergt 
Rds. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 
Ptl.. 


3 

1 
12 
19 
18 
16 
15 
14 
10 
10 
19 
19 
16 
11 
13 
16 
14 
15 
21 
20 
20 
29 
22 
24 
22 
21 
20 
24 
25 
23 
27 
23 
23 
20 
21 
20 
20 
21 
21 
27 
20 
23 
21 
21 
20 
22 
26 
20 
26 
21 


1 

$12,591 

7 

466 

2 

2,891 

11 

1,625 

9 

20,443 

6 

28,675 

23,600 

8 

21,835 

7 

20,819 

11 

18,050 

3 

12,449 

6 

14,150 

1 

25,666 

2 

25,782 

10 

22,000 

7 

14,669 

11 

18,226 

9 

20,403 

2 

18,283 

10 

22,316 

5 

50,750 

10 

58,666 

3 

41,190 

3 

49,361 

4 

34,961 

1 

38,553 

4 

34,679 

10 

35,166 

6 

31,516 

7 

36,718 

1 

37,007 

5 

35,623 

11 

47,200 

7 

35,050 

41,181 

3 

27,884 

10 

30,835 

6 

30,437 

24,000 

io 

29,266 

9 

29,050 

7 

36,319 

8 

27,729 

11 

31,581 

6 

28,900 

4 

28,664 

1 

27,000 

9 

28,650 

2 

32,419 

6 

27,600 

33,400 

7 

29,012 

135 


the  Services  of  Fifty-two  Members  of  the  Force  Retired  for  Disability. 


Amount 

1 

Average 

Pension  Drawn 

Future  Pension 

Contri- 

Cost to 

Total 

buted 

the  City 

Pay  and 
Pension 

at 
2% 

Per 

Year  of 

Years 

Months 

Amount 

Present 
Age 

Expect, 
of  Life 

Rate 

Amount 

Per 
Annum 

Active 
Service 

1 

2 

$525 

36 

16.63 

$450 

$7,484 

$20,600 

$252 

$2,241 

10 

12,500 

35 

16.04 

1,400 

22,456 

35,422 

9 

61,057 

13 

15,701 

37 

17.11 

1,400 

23,954 

42,546 

58 

13,403 

1 

450 

27 

9.21 

450 

4,145 

6,220 

33 

3,222 

3 

"3 

2,060 

39 

17.78 

634 

11,273 

33,776 

409 

2,617 

5 

3 

5,108 

47 

17.28 

973 

16,813 

50,596 

574 

2,565 

4 

2,524 

50 

16.22 

631 

10,235 

36,359 

472 

1,994 

8 

*3 

4,950 

49 

16.61 

600 

9,966 

36,751 

437 

2,178 

5 

1 

1,760 

45 

17.80 

543 

9,665 

32,244 

416 

2,043 

1 

3 

675 

41 

18.09 

540 

9,769 

28,494 

361 

1,886 

5 

9 

2,070 

42 

18.12 

360 

6,523 

21,042 

249 

2,029 

5 

9 

4,025 

36 

16.63 

485 

8,066 

26,241 

283 

2,472 

1 

1 

760 

43 

18.08 

700 

12,656 

39,082 

513 

2,021 

1 

675 

49 

16.61 

675 

11,212 

37,669 

516 

1,938 

4 

"8 

2,696 

50 

16.22 

578 

9,375 

34,071 

440 

1,998 

5 

4 

2,160 

40 

17.97 

405 

7,278 

24,107 

293 

2,056 

3 

6 

1,704 

42 

18.12 

487 

8,824 

28,754 

365 

2,039 

1 

5 

991 

43 

18.08 

700 

12,656 

34,050 

408 

2,008 

2 

992 

40 

17.97 

496 

8,913 

28,188 

366 

1,963 

1 

"3 

687 

42 

18.12 

550 

9,966 

32,969 

446 

2,154 

15 

2 

22,750 

66 

8.78 

1,500 

13,170 

86,670 

1,015 

3,999 

5 

1 

8,896 

71 

6.76 

1,750 

11,830 

79,392 

1,173 

3,755 

3 

9 

5,166 

49 

16.61 

1,375 

22,839 

69,195 

824 

3,376 

5 

6 

7,562 

58 

12.50 

1,375 

17,188 

74,111 

987 

2,500 

2 

6 

2,812 

47 

17.28 

1,125 

19,440 

57,213 

699 

2,531 

4 

8 

4,666 

54 

14.43 

1,000 

14,430 

57,649 

771 

2,362 

3 

844 

45 

17.80 

1,125 

20,025 

55,548 

694 

2,457 

"i 

4 

1,500 

45 

17.80 

1,125 

20,025 

56,691 

703 

2,565 

6 

5 

6,417 

53 

14.90 

1,000 

14,900 

52,833 

630 

2,546 

3 

1 

3,084 

49 

16.61 

1,000 

16,610 

56,412 

734 

2,265 

3 

5 

3,416 

51 

15.80 

1,000 

15,800 

56,223 

740 

2,212 

•  •  • 

3 

300 

48 

16.96 

1,125 

19,080 

55,003 

712 

2,318 

6 

1,687 

54 

14.43 

1,125 

16,234 

65,121 

944 

2,299 

1,125 

53 

14.90 

1,125 

16,763 

52,938 

701 

2,215 

3 

3,375 

51 

15.80 

1,125 

17,775 

62,331 

824 

2,674 

"7 

4,583 

47 

17.28 

1,000 

17,280 

49,747 

558 

2,429 

4 

1,166 

46 

17.57 

875 

15,374 

47,375 

617 

2,142 

4 

1,166 

46 

17.57 

875 

15,374 

46,977 

609 

2,262 

19 

10 

12,892 

68 

7.94 

650 

5,161 

42,053 

480 

2,079 

7 

1,809 

50 

16.22 

700 

11,354 

42,429 

585 

1,917 

6 

1,050 

53 

14.90 

700 

10,430 

40,530 

581 

1,837 

700 

50 

16.22 

700 

11,354 

48,373 

726 

1,728 

"4 

933 

52 

15.36 

700 

10,752 

39,414 

555 

1,880 

2 

1,516 

50 

16.22 

700 

11,354 

44,451 

632 

1,832 

2 

817 

46 

17.57 

700 

12,299 

42,016 

578 

1,927 

3 

875 

52 

15.36 

700 

10,752 

40,291 

573 

1,862 

700 

53 

14.90 

700 

10,430 

38,130 

540 

1,872 

*6 

5,250 

54 

14.43 

700 

10,101 

44,001 

573 

1,909 

9 

2,625 

59 

12.01 

700 

8,407 

43,451 

648 

1,636 

5 

991 

51 

15.80 

700 

11,060 

39,651 

552 

1,907 

9 

5,425 

62 

10.57 

700 

7,399 

46,224 

668 

1,752 

750 

57 

12.99 

700 

9,093 

38,855 

580 

1,774 

: 1 

136 

Minutes  op  the  Pension  Board  op  the  Police  Department  op  the 

City  op  New  York 

Meeting  of  the  pension  board  called  to  order  by  the  president  at  2.30 
P.  M.,  August  20,  1912,  with  the  following  members  present : 

President,  Fourth  Deputy  Commissioner  James  E.  Dillon. 

Chief  Clerk  William  H.  Kipp. 

Lieutenant  Richard  E.  Enright. 

Sergeant  John  T.  Nilon. 

Patrolman  Peter  McEntee. 

The  meeting  was  called  to  order  by  the  president  and  the  following 
applications  for  retirement,  pension,  and  increase  of  pension  were  passed 
upon  by  the  board : 

William  F.  Delaney,  applicant  for  retirement. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  this  applicant  be  retired  on  an  annual  pension  of  $1,125. 

James  Irwin,  applicant  for  retirement. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  this  applicant  be  retired  on  an  annual  pension  of  $875. 

Bernard  J.  Burns,  applicant  for  retirement. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  this  applicant  be  retired  on  an  annual  pension  of  $700. 

Bernard  J.  McCahill,  applicant  for  retirement. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  this  applicant  be  retired  on  an  annual  pension  of  $350. 

Patrick  D.  Shea,  applicant  for  retirement. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  this  applicant  be  retired  on  an  annual  pension  of  $420. 

Edward  Schnitzker,  applicant  for  retirement. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  this  applicant  be  retired  on  an  annual  pension  of  $585. 

Ellen  Davis,  applicant  for  pension. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  this  applicant  be  granted  an  annual  pension  of  $300. 

Louise  Liddell,  applicant  for  pension. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  this  applicant  be  granted  an  annual  pension  of  $300. 

Mary  Reeves,  applicant  for  pension. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  this  applicant  be  granted  an  annual  pension  of  $300. 


137 

Minnie  V.  Jones,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  this  applicant's  pension  be  increased  to  the  sum  of  $300 
per  annum. 

Joseph  F.  Martin,  guardian  of  Francis  and  Marion  Martin,  infants,  for 
pension. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  a  pension  of  $15  per  month  be  granted  to  Marion  Mar- 
tin, infant,  and  $10  per  month  to  the  infant,  Francis  Martin. 

Mary  E.  Hughes,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  pension  of  this  applicant  be  increased  to  the  sum  of 
$300  per  annum. 

Sophia  Hesch,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  pension  of  this  applicant  be  increased  to  the  sum  of 
$300  per  annum. 

Catherine  Dougherty,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  pension  of  this  applicant  be  increased  to  the  sum  of 
$300  per  annum. 

Mary  Hedeman,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  pension  of  this  applicant  be  increased  to  the  sum  of 
$600  per  annum. 

Margaret  Gilhooly,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  pension  of  this  applicant  be  increased  to  the  sum  of 
$600  per  annum. 

Eebecca  Creed,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  pension  of  this  applicant  be  increased  to  the  sum  of 
$300  per  annum. 

Orville  A.  Todd,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  application  of  this  applicant  be  laid  over  for  future 
consideration. 

Alexander  H.  Howry,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  application  of  this  applicant  for  increase  of  pension 
be  denied. 


138 

John  J.  Conlon,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  application  of  this  applicant  for  increase  of  pension 
be  denied. 

Charles  Richards,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  application  of  this  applicant  for  increase  of  pension 
be  denied. 

Thomas  Young,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  application  of  this  applicant  for  increase  of  pension 
be  denied. 

Mrs.  Joseph  M.  Phelan,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  application  of  this  applicant  for  increase  of  pension 
be  denied. 

George  W.  Creighton,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  application  of  this  applicant  for  increase  be  denied. 

Frederick  H.  "Wolff,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  application  of  this  applicant  for  increase  of  pension 
be  denied. 

Matthew  Dwyer,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  application  of  this  applicant  for  increase  of  pension 
be  denied. 

Martin  J.  O'Connell,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  application  of  this  applicant  for  increase  be  denied. 

James  Duvanney,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  application  of  this  applicant  for  increase  of  pension 
be  denied. 

Carrie  Brown,  applicant  for  increase. 

It  was  unanimously  voted  that  the  board  recommend  to  the  police 
commissioner  that  the  application  of  this  applicant  for  increase  of  pension 
be  denied. 

No  other  business  being  before  the  board  the  meeting  was  adjourned 
to  August  27,  1912. 

President. 


PENSION  RECORD 

OF 

LIEUTENANT  JAMES  F.  VALLELY 


First  retirement  February  14,  1905 
Reinstated  to  active  service  June  7,  1906 
Second  retirement  May  21,  1908 


7-100 


141 
Record  op  Complaints 


Name,  James  F.  Vallely 
Rank,  Lieutenant 
Appointed,  August  12,  76. 


Date  of 

Nature  of  Complaint 

Judgment 

Complaint 

Date 

Penalty 

Conduct  unbecoming  an  officer 

Neglect  to  patrol 

Oct.   31,  76 
Jan.    29,  77 
Oct.    14,78 

D.  C. 

3  days 

Dec.  27,  '84 

Neglected  to  report  rubbish  on  street 

Promoted  to  Detective  Sergeant 

D.  C. 

Sept.  16,  '92 

Honorable  Mention  and  Medal — rescued 
woman  from  fire 

April    3,  '99 

Commended  for  services  in  case  of  murder 
of  Evalin  Reynold 

Feb.   14,  '05 

Retired 

June    7,  '06 

Re-instated 

April  19,  '07 

Title  changed  to  Lieutenant 

SENATE    NO.    366 
Chapter  663 

AN  ACT 

AUTHORIZING  THE  POLICE  COMMISSIONER  OF  THE  CITY  OF 
NEW    YORK    TO    REINSTATE    DETECTIVE    SERGEANTS. 

Accepted  by  the  City.    Became  a  law,  May  31,  1906,  with  the  ap- 
proval of  the  Governor.    Passed,  three-fifths  being  present. 

The  People  of  the  State  of  New  York,  represented  in  Senate  and  As- 
sembly, do  enact  as  follows: 

Section  1.  The  Police  Commissioner  of  the  City  of  New  York  is 
hereby  authorized,  in  his  discretion,  to  reinstate  any  detective  sergeant 
who  has  been  retired  within  two  years  prior  to  the  passage  of  this  act, 
upon  application  in  writing  for  such  reinstatement;  and  the  Police  Com- 
missioner may,  in  his  discretion,  restore  such  reinstated  detective  sergeant 
to  his  former  rank  in  the  police  department. 

2.     This  act  shall  take  effect  immediately. 

State  of  New  York, 

Office  of  the  Secretary  of  State. 

ss: 

I  have  compared  the  preceding  with  the  original  law  on  file  in  this 
office,  and  do  hereby  certify  that  the  same  is  a  correct  transcript  there- 
from, and  the  whole  of  said  original  law. 

Given  under  my  hand  and  the  seal  of  office  of  the  Secretary  of  State, 
at  the  City  of  Albany,  this  first  day  of  June  in  the  year  one  thousand 
nine  hundred  and  six. 

(Signed)        Horace  G.  Tennant, 

Second  Deputy  Secretary  of  State. 


142 

New  York  City,  N.  Y.,  June  4th,  1906. 

Hon.  Theodore  A.  Bingham, 
Police  Commissioner, 

300  Mulberry  Street,  City. 

Sir:  In  accordance  with  Senate  Bill  366,  Chapter  663,  of  the  Laws 
of  1906,  authorizing  the  Police  Commissioner  of  the  City  of  New  York  to 
reinstate  Detective  Sergeants  who  have  been  retired  within  the  past  two 
years,  which  became  a  law  on  May  31st,  1906,  I  respectfully  apply  for 
reinstatement  as  Detective  Sergeant,  and  would  state  that  I  was  retired 
February  14th,  1905. 

Trusting  that  my  application  meets  with  your  favorable  approval, 
I  remain, 

Eespeetfully, 

(Signed)        James  F.  Vallely. 

Memorandum  in  Ink. 

Detective  Sergeant,  Jas.  F.  Vallely  is  reinstated  in  accord- 
ance with  Chap.  663— Laws  of  1906  to  take  effect  8  A.M., 
June  7,  1906. 

(Signed)  Theo.  A.  Bingham, 
Police  Com. 


TO  ALL  TO  WHOM  THESE  PRESENTS  SHALL  COME  OR  MAY 

CONCERN: 

"Whereas:  On  the  14th  day  of  February,  1905,  an  order  was  issued 
by  the  Police  Commissioner  of  the  Police  Department  of  the  City  of  New 
York  retiring  and  dismissing  James  F.  Vallely  from  the  Police  Force  of 
the  Police  Department  of  the  City  of  New  York  and  awarding  him  a  pen- 
sion of  the  annual  sum  of  One  Thousand  Dollars  ($1,000),  and 

"Whereas,  said  James  F.  Vallely  has  applied  for  reinstatement  to  the 
said  Police  Force,  and  in  consideration  of  said  application  being  granted 
by  the  Police  Commissioner,  has  agreed  to  waive  and  relinquish  any  and 
all  claim  to  said  pension  moneys  so  granted  to  him  by  the  order  of  the 
Police  Commissioner,  and  to  any  and  all  claim  or  salary  as  a  member  of 
the  Police  Force  which  may  be  due  him  prior  to  this  date;  and 

Whereas,  the  Police  Commissioner,  in  pursuance  of  the  provisions  of 
Chapter  663,  of  the  Laws  of  1906,  has  this  day  reinstated  the  said  James 
F.  Vallely  to  his  former  rank  of  Detective  Sergeant  in  the  Police  Depart- 
ment on  condition  that  the  said  James  F.  Vallely  shall  file  a  release  and 
waiver  forever  for  any  claim  for  himself,  his  heirs,  and  executors  upon 
the  Police  Pension  Fund  for  any  pension  which  may  be  due  him  under 
the  order  of  the  Police  Commissioner  adopted  as  aforesaid,  and  also  a  re- 
lease and  waiver  forever  for  any  claim  for  himself,  his  heirs,  and  executors 
upon  the  Police  Department  of  the  City  of  New  York,  or  upon  the  City 
of  New  York  for  any  salary  which  may  be  due  him  prior  to  this  date. 

Now,  therefore,  for  and  in  consideration  of  the  premises,  and  of  the 
sum  of  One  Dollar  to  me  in  hand  paid,  the  receipt  whereof  is  hereby  ac- 
knowledged, the  said  James  F.  Vallely  for  himself,  his  heirs,  executors, 


143 

administrators,  and  assigns  does  forever  release,  remise,  and  discharge  the 
Police  Department  of  the  City  of  New  York  and  the  Police  Commissioner 
thereof,  and  the  Mayor,  Aldermen,  and  Commonalty  of  the  City  of  New 
York,  their  and  each  of  their  successors  and  assigns  of  and  from  any  and 
all  claim  or  cause  of  action  which  may  arise,  or  has  arisen  by  reason  of 
the  granting  of  the  aforesaid  pension,  or  for  any  salary  which  may  be  due 
the  said  James  F.  Vallely  prior  to  this  date. 

In  witness  whereof,  the  said  James  F.  Vallely  has  hereunto  set  his 
hand  and  seal  at  the  City  of  New  York  on  the  6th  day  of  June,  1906. 

(Signed)        James  F.  Vallely. 
Sealed  and  delivered  in  the 
presence  of 

(Signed)         Andrew  H.  G.  Evans. 


State  of  New  York, 

City  and  County  of  New  York. 

ss: 

On  this,  6th  day  of  June,  1906,  before  me  personally  came  and  ap- 
peared the  above  named  James  F.  Vallely,  to  me  known  and  known  to 
me  to  be  the  individual  described  in  and  who  executed  the  foregoing  in- 
strument, and  he  duly  acknowledged  to  me  that  he  executed  the  same  for 
the  purposes  therein  mentioned. 

(Signed)         James  F.  Vallely. 
Sworn  to  before  me  this, 
6th  day  of  June,  1906. 

(Signed)         Andrew  H.  G.  Evans, 
Notary  Public, 

New  York  County. 


POLICE    DEPARTMENT 
OF    THE    CITY   OF   NEW   YORK 

300  Mulberry  Street 

Office  of  the  Chief  Surgeon. 

New  York,  June  6th,  1906. 

Memorandum  for  the  Police  Commissioner: 

Under  my  direction,  Surgeons  Augustus  H.  Brown,  Edward  T.  Hig- 
gins,  and  John  D.  Gorman,  this  day  examined  James  F.  Vallely,  retired 
Detective  Sergeant,  and  find  that  he  is  fit,  physically  and  mentally,  to  per- 
form police  duty. 

Respectfully, 

(Signed)        John  J.  Quigley, 
Chief  Surgeon. 


144 

POLICE    DEPARTMENT 

OF    THE    CITY   OF   NEW   YORK 

300  Mulberry  Street 

New  York 

Provided,  That  James  F.  Vallely  shall  file  a  release  and  waiver  for- 
ever, for  any  claim  for  himself,  his  heirs,  or  executors,  upon  the  Police 
Pension  Fund  for  any  pension  which  may  be  due  him  under  an  order  of 
the  Police  Commissioner  of  the  Police  Department  of  the  City  of  New 
York,  dated  February  14,  1905,  retiring  and  dismissing  him  from  mem- 
bership in  the  Police  Force  and  placing  him  upon  the  Police  Pension  roll 
and  awarding  and  granting  to  him  a  pension  from  the  Police  Pension 
Fund  of  the  annual  sum  of  $1,000.00,  and  a  release  and  waiver  forever 
for  any  claim  for  himself,  his  heirs,  or  executors  upon  the  Police  Depart- 
ment of  the  City  of  New  York,  or  upon  the  City  of  New  York  for  any 
salary  which  may  be  due  him  prior  to  this  date. 

Now,  upon  reading  and  filing  a  certified  copy  of  Chapter  663  of  the 
Laws  of  1906,  authorizing  the  Police  Commissioner  of  the  City  of  New 
York  to  reinstate  any  Detective  Sergeant  who  has  been  retired  within  two 
years  prior  to  the  passage  of  said  act,  and  upon  filing  the  application  in 
writing  of  James  F.  Vallely  for  reinstatement  as  Detective  Sergeant, 

Ordered,  that  James  F.  Vallely  be  and  is  hereby  reinstated  as  Detec- 
tive Sergeant  in  the  Police  Department  of  the  City  of  New  York,  to  take 
effect  at  8  o'clock  A.  M.,  June  7,  1906. 

Theo.  A.  Bingham, 

Police  Commissioner. 


POLICE    DEPARTMENT 

OF    THE    CITY   OF    NEW   YORK 

300  Mulberry  Street 

May  11th,  1908. 
The  Police  Commissioner. 
(Through  Official  Channels.) 

Sir:  I  have  the  honor  to  recommend  that  a  medical  survey  be  held 
upon  Lieutenant  James  F.  Vallely,  of  the  Detective  Bureau,  for  the  pur- 
pose of  determining  his  ability  to  perform  police  duty. 

Respectfully, 

("Signed)        A.  H.  Brown, 

Surgeon  13th  District. 


145 

POLICE   DEPARTMENT, 
CITY    OF    NEW   YORK 

300  Mulberry  Street 

Order  of  Examination 
Under  Provisions  of  Section  355  of  the  Greater  New  York  Charter 

New  York,  May  18th,  1908. 
Special  Order  No.  121-D. 

Ordered,  That  Police  Surgeons 

"Walter  B.   Brouner, 
Edward  J.  Donlin, 
Samuel  M.  Johnson, 

do  proceed  to  the  examination  of  Lieut.  James  F.  Vallely,  Det.  Bur.,  a  mem- 
ber of  the  Police  Force  and  who  has  served  on  such  Police  Force  for  a 
period  of  twenty  years  and  upwards,  for  the  purpose  of  ascertaining  if 
he  is  permanently  disabled,  physically  or  mentally,  so  as  to  be  unfit  for 
duty. 

Ordered,  That  said  James  F.  Vallely  do  appear  before  said  Police 
Surgeons,  at  such  time  and  place  as  they  may  designate,  for  the  purpose 
of  submitting  to  such  examination. 

Ordered,  That  said  Surgeons,  upon  making  of  such  examination,  do 
report  and  certify  the  result  thereof  in  writing,  and  whether  or  not  such 
disability,  as  upon  such  examination  they  may  ascertain  to  exist,  is  perma- 
nent and  of  such  a  character  as  to  unfit  said  James  F.  Vallely  for  the  per- 
formance of  police  duty,  and  that  they  also  and  at  the  same  time  ascertain, 
report,  and  certify  the  cause,  nature,  and  extent  of  such  disability. 

Ordered,  That  such  examination  proceed  and  such  report  be  made 
with  all  reasonable  diligence. 

(Signed)        Wm.  F.  Baker, 

Acting  Police  Commissioner. 


POLICE   DEPARTMENT, 
CITY    OF    NEW   YORK 

300  Mulberry  Street 

Retirement  for  Disability 
Certificate  Under  Provisions  of  Section  355  of  the  Greater  New 

York  Charter 

New  York,  May  20th,  1908. 
To  the  Police  Commissioner. 

Sir:    In  compliance  with  Special  Order  No.  121-D,  dated  May  18, 
1908,  the  undersigned  Police  Surgeons  have  on  this,  20th  day  of  May, 


146 

1908,  examined  Lieut.  James  F.  Vallely,  Det.  Bur.,  a  member  of  the  Police 
Force,  and  respectfully  submit  the  following  certificate  in  relation  thereto : 
We  do  hereby  certify,  That  said  James  F.  Vallely,  who  has  per- 
formed duty  on  the  Police  Force  for  a  period  of  twenty  years  and  up- 
wards, is  permanently  disabled  (a)  physically  so  as  to  be  unfit  for  duty; 
that  the  cause,  nature,  and  extent  of  such  disability  is:  Cause,  arterio- 
sclerosis. Nature,  defective  vision.  Extent,  impairs  his  vision  so  much 
as  to  prevent  the  performance  of  duty  by  him ;  that  such  disability  is  per- 
manent and  is  of  such  a  character  as  to  unfit  him  for  the  performance  of 
police  duty. 

Walter  B.  Brouner, 
(Signed)    J    Edward  J  Donlin, 
1   Samuel  M.  Johnson, 
Police  Surgeons. 


POLICE    DEPARTMENT, 
CITY    OF    NEW   YORK 

300  Mulberry   Street 

Order  of  Retirement  and  Dismissal 
Under  Provisions  of  Section  355  of  the  Greater  New  York  Charter 

New  York,  May  21,  1908. 

Special  Order  No. . 

Special  Order  No.  121-D  having  been  made  on  the  18th  day  of  May, 
1908,  directing  Police  Surgeons 

Walter  B.  Brouner, 
Edward  J.  Donlin,  and 
Samuel  M.  Johnson 

to  proceed  to  the  examination  of  Lieutenant  James  F.  Vallely,  Detective 
Bureau,  a  member  of  the  Police  Force  who  has  served  thereon  twenty 
years,  for  the  purpose  of  ascertaining  if  he  is  permanently  disabled  physi- 
cally or  mentally  so  as  to  be  unfit  for  duty,  and  said  Police  Surgeons  hav- 
ing conducted  such  examination  and  having  reported  and  certified  the  re- 
sult thereof  in  writing,  and  the  cause,  nature,  and  extent  of  his  disability, 
and  that  the  said  James  F.  Vallely  is  permanently  disabled  physically  so 
as  to  be  unfit  for  duty,  and  it  appearing  that  Section  355  of  the  Greater 
New  York  Charter  is  applicable  to  such  case,  it  is 

Ordered,  That  James  F.  Vallely,  a  member  of  the  Police  Force  of  the 
City  of  New  York,  be  and  he  is  hereby  relieved  and  dismissed  from  said 
Police  Force  and  Service  and  placed  on  the  roll  of  the  Police  Pension 
Fund,  and  he  is  hereby  awarded  and  granted  a  pension  at  the  rate  of 
$1,000.00  per  annum,  the  said  pension  to  be  paid  and  the  payment  thereof 
to  be  subject  to  the  laws  and  statutes  in  that  case  made  and  provided, 
and  the  rules  and  regulations  of  this  Department  with  reference  thereto. 

Ordered,  That  this  order  take  effect  this  day  at  12  o'clock  midnight 
to-day. 

(Signed)         Theo.  A.  Bingham, 

Police  Commissioner. 


PART  II 

ACTUARIAL  REPORT 

PREPARED  BY 

GEORGE  B.  BUCK 

As  of  February  1,  1913 


THE    BENEFITS. 

The  provisions  in  the  various  laws  governing  the  granting  of  pension* 
to  the  employees  of  the  New  York  City  police  force  provide  a  number  of 
benefits.     Briefly  summarized  they  are  as  follows: 

Employees. 

Regular  or  service  pensions : 

Pension  in  the  discretion  of  the  Police  Commissioner  of  a  minimum 
of  one-half  final  salary  to  all  members  superannuated  after  20  years  of 
service  who  have  attained  age  55. 

Pension  in  the  discretion  of  the  Police  Commissioner  of  a  minimum 
of  one-half  final  salary  to  all  members  superannuated  at  age  60.  (Vet- 
erans of  Civil  and  Mexican  wars  excluded.) 

Pension  of  a  minimum  of  one-half  final  salary  to  a  veteran  of 
Civil  War  who  has  had  20  years  of  service  or  has  attained  age  60. 

Pension  of  a  minimum  of  one-half  final  salary  to  all  members 
having  25  years  of  service  who  have  attained  age  55. 

Disability  or  invalid  pensions: 

Pension  of  one-fourth  to  one-half  of  final  salary  to  all  members 
disabled  in  actual  performance  of  duty. 

Pension  of  one-fourth  to  one-half  of  final  salary  to  all  members 
becoming  unfit  for  police  duty  (without  misconduct  on  employees' 
part)  who  have  had  from  10  to  25  years  of  service. 

Pension  of  minimum  of  one-half  final  salary  to  members  becoming 
unfit  for  police  duty  after  20  years  of  service.    (Certificate  of  surgeon.) 

Employees'  Families. 

(The  amount  of  the  pensions  to  persons  other  than  members  of  the 
active  force  is  discretionary  with  the  Police  Commissioner.  Maximum  limit 
generally  $600.) 

Widows  (All  benefits  terminate  on  remarriage) : 

Pension  to  widows  of  all  members  of  active  force  killed  in  actual 
performance  of  duty. 

Pension  to  widows  of  all  other  members  of  active  force  who  die 
after  10  years'  service. 

Pension  to  widows  of  all  pensioners  dying. 

149     ' 


150 


Children  (All  benefits  terminate  at  age  18) : 

Pension  to  children  of  all  members  of  active  force  killed  in  actual 
performance  of  duty. 

Pension  to  children  of  all  other  members  of  active  force  who  die 
after  10  years'  service. 

Pension  to  children  of  all  pensioners  dying. 

Dependent  parents: 

Pension  to  dependent  parents  of  all  members  of  active  force  killed 
in  actual  performance  of  duty. 

Before  a  valuation  of  a  fund  embracing  these  pension  contingencies 
could  be  made,  it  was  necessary  to  collect  data  and  investigate  the  various 
forces  and  changes  which  were  operating  to  increase  or  diminish  the  re- 
sources of  the  fund,  as  it  is  only  upon  an  accurate  measure  of  these  ele- 
ments that  a  valuation  can  be  made.  The  points  that  it  was  necessary  to 
know  were  as  follows : 


(1 

(2 

(3 

(4 

(5 

(6 
(7 
(8 
(9 
(10 

<H 
(12 

(13 
(14 


The  probable  mortality  of  members  while  in  the  active  force. 

The  probable  withdrawal  experience  or  rate  of  leaving  the  active 
force  by  resignation  or  dismissal. 

The  probable  rate  of  accidental  death  of  members  in  the  active 
force. 

The  probable  rate  of  invalidity  or  retirement  on  disability 
pension. 

The  probable  rate  of  superannuation  or  regular  retirement  from 
the  active  force. 

The  probable  mortality  of  members  on  the  disability  pension  roll. 

The  probable  mortality  of  members  on  the  regular  pension  roll. 

The  probable  mortality  of  widows  on  the  pension  roll. 

The  probable  rate  of  withdrawal  from  the  widow's  pension  roll. 

The  probable  rate  of  mortality  of  children  on  the  pension  roll. 

The  probable  rate  of  mortality  of  all  employees. 

The  probable  rate  of  salary  increase  of  members  of  the  active 
force. 

The  conjugal  condition  of  the  members  at  various  ages  and  the 
ages  of  their  wives. 

The  average  number  of  children  per  member  at  each  age,  and 
the  ages  of  the  children. 


THE   DATA. 

Collecting 

The  information  required  for  the  valuation  could  be  secured  only  by 
tabulating  it  directly  from  the  active  records  and  registers  in  the  offices 
of  the  Police  Department.     An  examination  of  the  records  showed  that 


151 

no  information  could  be  obtained  in  regard  to  the  ages  of  the  wives,  or 
the  number  and  ages  of  children,  of  members  of  the  active  force.  It  was 
necessary,  therefore,  to  resort  to  the  experience  of  other  funds  for  this 
information ;  the  major  portion  of  the  required  information  was  available, 
however,  although  it  was  in  such  shape  as  to  make  the  labor  of  collecting 
it  exceedingly  difficult.  The  information  for  each  person  was  tabulated 
directly  from  the  police  records  on  a  dual  tabulation  card  (see  fac-simile 
on  next  page). 

The  information  was  supplied  in  the  small  spaces  on  the  card  by  means 
of  a  system  of  symbols,  a  card  being  made  for  every  person  who  was  in 
the  active  service  or  on  pension  during  the  period  from  January  1,  1907, 
to  the  date  of  tabulation,  which  commenced  after  the  first  of  February, 
1913. 

The  records  used  as  the  source  of  information  at  police  headquarters 
were  most  unsatisfactory,  but  through  supplementary  investigations  the 
final  results  were  made  satisfactory,  and  the  information  secured  is  con- 
sidered reliable.  The  tabulation  was  delayed  in  every  way  possible  by  an 
apparent  desire  on  the  part  of  the  police  officials  to  hinder  a  satisfactory 
investigation  and  to  prevent  a  disclosure  of  the  assets  and  liabilities  of 
the  fund.  However,  after  several  weeks  of  unnecessary  delays  and  de- 
liberate embarrassments,  the  records  became  available,  and  the  tabulation 
was  made.  The  work  was  made  very  tedious,  because  the  records  were 
not  adapted  to  the  needs  of  a  valuation.  As,  in  many  cases,  the  complete 
record  of  a  member  was  not  available  in  one  place,  the  information  had 
to  be  secured  from  two  to  four  different  sources.  This  made  it  necessary 
that  the  cards  be  partly  written,  and  then  matched  up  to  the  different 
records  as  various  sources  of  information  were  consulted.  The  card  rec- 
ords in  the  case  of  men  dying  in  the  active  service  do  not  give  the  cause 
of  death.  It  was  therefore  necessary  to  sort  out  the  cards  for  all  such 
members,  and  resort  to  the  individual  file  of  pension  papers  in  order  to 
segregate  these  cards  into  accidental  and  other  deaths.  Considerable  time 
and  labor  were  expended  on  the  tabulation,  as  it  was  thought  better  to 
make  an  accurate  return  than  to  sacrifice  in  any  way  the  reliability  of  the 
data. 

Checking. 

Because  of  the  obstacles  encountered  in  the  work  at  police  headquar- 
ters, the  returns  were  checked  and  cross-checked  in  several  different  ways, 
in  order  that  no  records  might  be  overlooked  in  the  tabulation. 

The  cards  were  checked  for  duplicates  by  name,  shield  number,  and 
by  machine  assortment,  all  active  cards  being  checked  against  the  mem- 
bers' shield  numbers,  and  pensioners'  cards  against  the  published  list  of 
the  last  three  years.  To  prevent  any  error  in  the  experience  through  a 
failure  to  take  into  account  all  of  the  deaths,  dismissals,  and  other  decre- 
ments from  the  active  force  or  pension  members,  the  total  number  of  cards 
was  checked  against  the  published  totals  for  the  various  classes  as  of 
December  31,  1906  and  December  31,  1912,  which  gave  a  check  on  the 
increment  and  decrement  during  the  period,  since  the  difference  between 
the  increment  and  decrement  must  necessarily  correspond  to  the  increase 
revealed  by  the  totals  published  for  those  dates.  Such  difficulty  would 
have  been  entirely  removed  by  the  maintenance  of  less  cumbersome  rec- 
ords in  a  complete  and  scientific  manner. 


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Punching. 

The  cards,  after  the  information  had  been  supplied  at  police  head- 
quarters, were  shipped  to  Washington,  where  they  were  punched  and  tabu- 
lated. 

It  was  necessary  to  punch  some  of  the  dates  reported  in  two  different 
fields,  as  the  date  punched  for  a  member  leaving  the  active  force  on  a 
pension  is  not  always  taken  as  the  same  date  as  that  on  which  he  enters 
the  experience  of  the  pension  members,  etc. 


THE    TABULATION. 

General. 

After  the  cards  were  checked  and  punched,  they  were  sorted  and 
tabulated  by  machine.  The  period  covered  by  the  experience  is  January  1, 
1907  to  January  1,  1913,  a  period  of  six  years,  this  period  being  adopted 
because  January  1,  1907  is  the  earliest  date  for  which  records  for  the 
entire  service  were  available.  The  tabulation  for  the  present  pay  and 
pension  rolls  was  made  as  of  February  1,  1913,  this  being  the  latest  date 
for  which  the  cards  gave  a  record  of  all  changes.  The  following  table 
heads  give  a  summary  of  the  result  of  the  tabulations,  with  the  exception 
of  the  pay  and  pension  rolls,  which  appear  later  in  the  report.  These 
working  tables  are  not  set  forth  in  detail  because  of  the  space  required. 


Table  1 — Actual  Experience — ActiveIService. 


Age 

Sur- 
vivors 

En- 
trants 

With- 
drawals 

Acci- 
dental 
Deaths 

Other 
Deaths 

Disa- 
bility 
Retire- 
ments 

Other 
Retire- 
ments 

Exist- 
ing 

21 

22 

Etc. 

Detail  foi 

•  each  ag 

Total 

9,715 

3,116 

695 

27 

469 

1,182 

344 

10,115 

Table  2 — Actual  Experience — -Regular  Pensioners. 


Age 

Survivors 

Entrants 

Withdrawals 

Deaths 

3 

Existing 

55 

56 

Etc. 

De 

tail  for  each 

ige 

Total 

861 

286 

1 

349 

797 

154 


Table  3 — Actual  Experience 

— Disability  Pensioners. 

Age 

Survivors 

Entrants 

Withdrawals 

Deaths 

Existing 

23 

24 
Etc. 

Detail  for  each 

ige 

Total 

889 

989 

4 

350 

1,524 

Table  4 — Actual  Experience — Widow  Pensioners. 

Age 

Survivors 

Entrants 

Withdrawals 

Deaths 

Existing 

23 

24 
Etc. 

Detail  for  each  age 

Total 

1,049 

541 

114 

205 

1,271 

The  Salary  Scale. 

The  salaries  of  the  active  members  for  the  respective  years  of  the 
period  could  not  be  punched  on  the  card  because  of  lack  of  room,  and  it 
was  therefore  impossible  to  tabulate  them  directly  by  machine.  The  salary 
for  each  year  had  to  be  considered  in  relation  to  the  age  of  the  employee 
in  that  year,  so  that  each  card  had  to  be  handled  as  if  it  were  the  report 
on  six  different  men  at  so  many  different  ages.  By  means  of  this  com- 
bination the  salary  scale  was  based  on  the  entire  six-year  period,  which 
gave  averages  based  on  a  total  of  65,984  employees,  with  an  aggregate  pay- 
roll of  $90,598,485.  In  tabulating  the  salaries,  those  of  the  active  force 
were  tabulated  and  the  averages  obtained  from  the  results  roughly  gradu- 
ated ;  the  final  salaries  of  pensioners,  including  those  pensioned  before  the 
period,  were  tabulated  and  the  averages  roughly  graduated;  the  final 
salaries  of  pensioners,  excluding  all  of  those  pensioned  before  the  period, 
were  then  tabulated  and  the  results  roughly  graduated;  and  the  salaries 
of  pensioners  were  tabulated  for  the  year  preceding  the  final  salary  year 
and  the  averages  graduated.  The  curves  made  by  the  various  classes  were 
then  plotted  and  compared.  This  process  was  deemed  expedient  in  order 
to  study  the  effect  of  a  possible  selection  in  regard  to  the  members  retiring, 
and  as  an  assistance  in  the  construction  of  a  salary  scale.  The  salary  scale 
was  finally  based  on  a  combination  of  the  salaries  of  the  active  force  and 
the  final  salaries  of  pensioners,  who  retired  during  the  period  covered  by 
the  experience. 


155 


EXPOSURE   AND    CHECK   TABLES. 

Tables  of  actual  exposure  were  made  from  the  actual  experience  tables 
and  in  these  tables  the  actual  decrement  was  compared  with  the  expected 
decrement,  which  was  obtained  by  the  use  of  the  adjusted  rates  in  each 
case.  These  working  tables  are  not  shown;  however,  a  diagram  is  given 
for  each  rate,  which  gives  a  comparison  of  the  actual  unadjusted  rate  and 
the  rate  obtained  by  graduation. 


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164 

It  was  found  in  plotting  the  curves  on  the  ordinary  coordinate  paper 
that  as  the  various  rates  ran  into  the  smaller  decimals,  the  rise  and  fall  of 
the  curve  was  lost  unless  paper  was  used  which  was  so  large  as  to  be  im- 
practicable. To  overcome  this  difficulty  it  was  necessary  to  make  a  spe- 
cial coordinate  paper,  which  would  magnify  the  smaller  decimals.  On 
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A  comparison  of  the  actual  salaries  with  the  expected  salaries,  as 
obtained  by  the  use  of  the  adjusted  salary  scale,  was  made  by  means  of  a 
check  table.  A  graphic  comparison  of  the  actual  average  salaries  and  the 
graduated  salaries  is  given  in  the  following  diagram : 


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Note  :    The  reason  for  not  using  the  ordinary  co-ordinate  paper  in  this  case  was  simply 
to  preserve  uniformity  in  the  graphs. 


165 

THE    GRADUATION. 

The  actual  rates  obtained  directly  from  the  exposure  table  were  in 
a  form  unsuitable  for  use  in  forecasting  the  probable  experience  of  the 
future  until  they  were  adjusted  or  graduated  into  regular  curves.  The 
graduation  was  all  done  by  a  combination  of  the  graphic  method  and  Wool- 
house's  graduation  formula,  the  latter  being  applied  by  means  of  Mr.  J.  A. 
Higham's  summation  method  (J.  I.  A.,  Vol.  31,  319).  As  the  experience 
in  some  cases  was  not  very  extensive,  it  was  exceedingly  difficult  to  obtain 
a  curve  which  appeared  to  be  the  probable  experience  of  the  fund;  how- 
ever, the  rates  as  finally  adjusted  check  closely  to  the  actual  experience 
and  are  considered  entirely  satisfactory. 

RATES    AND    COMPARISONS. 

Active  Service. 

Considering  the  various  rates  in  the  order  in  which  they  appear  in 
the  diagrams  given  and  the  experience  tables  shown  later  in  the  report, 
the  first  rate  is  that  of  withdrawal  from  active  force.  The  comparison  of 
the  rate  used  with  that  of  other  funds  shows  that  the,  service  has  a  much 
lighter  withdrawal  experience  than  might  be  expected  in  a  service  which 
is  generally  classed  among  those  of  a  hazardous  nature.  This  rate  indi- 
cates that  either  the  employees  find  the  conditions  in  the  service  sufficiently 
attractive  to  hold  them,  or  that  the  mode  of  exit  from  the  active  force  is 
by  some  other  way  than  resignation  or  dismissal. 


Table  5 — 

iATE  OF 

Withdrawal  From  Active  Service. 

■ 
< 

.flGC^  . 

.a  pl;o~ 

&Uts 

< 

CT3  fl 

i!Js 
IN 

a  gw  >; 

o  ^^ — ' 

O 

03     O 

rs  -i-=  o> 

■^  fl  V 

-£  a  fl 

3  tn  <V 

o  «'E 

02  >  S 

u 

< 

o  V 

.22   CL^^ 

S  fell 

C  00  ' 

CT3  fl 
O  C  o3 

11*1 
0 

J  2 
2c2 

o  a; -si 

55  H 

20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 

.0563 
.0476 
.0400 
.0338 
.0291 
.0257 
.0234 
.0218 
.0203 
.0186 
.0168 
.0147 
.0126 
.0107 
.0093 
.0083 
.0078 
.0075 
.0073 
.0071 
.0068 

.0858 
.0805 
.0745 
.0679 
.0607 
.0535 
.0464 
.0402 
.0353 
.0315 
.0285 
.0264 
.0249 
.0238 
.0230 
.0224 
.0218 
.0211 
.0202 
.0190 
.0177 

.0550 
.0500 
.0470 
.0440 
.0410 
.0380 
.0350 
.0330 
.0310 
.0290 
.0270 
.0250 
.0230 
.0210 
.0190 
.0170 
.0150 
.0140 
.0130 
.0120 
.0110 

.0487 
.0559 
.0585 
.0558 
.0509 
.0461 
.0413 
.0365 
.0323 
.0287 
.0252 
.0223 
.0195 
.0176 
.0157 
.0142 
.0126 
.0117 
.0108 
.0099 
.0089 

41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
51 
52 
53 
54 
55 
56 
57 
58 
59 
60 
61 

.0063 
.0057 
.0050 
.0043 
.0036 
.0030 
.0025 
.0022 
.0019 
.0018 
.0017 
.0016 
.0016 
.0015 
.0014 
.0013 
.0011 
.0008 
.0006 
.0004 
.0002 

.0162 
.0147 
.0131 
.0118 
.0106 
.0100 
.0095 
.0091 
.0087 
.0081 
.0074 
.0066 
.0059 
.0051 
.0044 
.0035 
.0025 
.0015 
.0005 

.0 
.0 
.0 
.0 
.0 
.0 
.  .0 
.0 
.0 
.0 

100 
090 
080 
070 
060 
050 
040 
030 
020 
010 

.0085 
.0082 
.0078 
.0075 
.0070 
.0065 
.0059 
.0054 
.0049 
.0043 
.0037 
.0031 
.0025 
.0019 
.0013 
.0007 

166 

The  rate  of  mortality  from  accidental  death  while  in  actual  perform- 
ance of  duty  is  not  compared  with  any  other  accidental  death  rates,  as 
accident  tables  are  not  available  for  published  comparisons.  The  rates 
given  show  that  the  mortality  from  this  source  is  very  low,  and  that  the 
general  impression  that  the  New  York  police  service  is  extremely  haz- 
ardous is  erroneous.  Great  care  was  taken  in  the  investigation  of  this 
rate,  and,  as  it  corresponds  very  closely  with  an  accidental  death  investiga- 
tion of  the  same  force  made  some  few  years  ago,  the  figures  are  considered 
to  indicate  properly  the  experience  of  the  fund. 

Table  6 — Rate  of  Accidental  Death  While  in  Actual  Performance  of  Duty. 


Age 

Rate 

Age 

Rate 

Age 

Rate 

20 

.00000 

33 

.00040 

46 

.00064 

21 

.00000 

34 

.00040 

47 

.00077 

22 

.00008 

35 

.00041 

48 

.00083 

23 

.00014 

36 

.00041 

49 

.00084 

24 

.00020 

37 

.00041 

50 

.00083 

25 

.00026 

38 

.00041 

51 

.00076 

26 

.00030 

39 

.00042 

52 

.00056 

27 

.00033 

40 

.00042 

53 

.00038 

28 

.00035 

41 

.00043 

54 

.00024 

29 

.00037 

42 

.00044 

55 

.00015 

30 

.00038 

43 

.00046 

56 

.00007 

31 

.00039 

44 

.00048 

57 

.00001 

32 

.00039 

45 

.00053 

58 

.00000 

The  rate  of  mortality  in  the  active  service,  exclusive  of  the  mortality 
due  to  accidental  death,  is  what  might  have  been  expected  in  a  service  of 
this  nature.  In  the  younger  ages  the  mortality  is  light,  due  no  doubt  to 
the  selection  of  healthy  men  for  service  on  the  police  force.  The  mortality 
remains  rather  light  until  after  the  employees  have  reached  age  50,  when 
it  gradually  increases  to  a  rate  which  is  very  close  to  that  of  the  American 
or  the  Combined  experience  tables  of  mortality.  An  explanation  of  this 
change  might  be  found  in  the  fact  that  the  tendency  of  employees  whose 
health  is  in  any  way  impaired  to  retire  on  a  disability  pension,  maintains 
a  service  of  very  healthy  persons.  It  is  possible  that  this  tendency  is  re- 
tarded about  age  50,  as  the  ordinary  employee  will  have  reached  an  age 
where  he  would  prefer  to  wait  until  he  can  retire  on  a  regular  pension, 
since  the  maximum  amount  of  disability  pension  allowable  is  the  minimum 
amount  of  the  regular  pension  allowance. 


167 


Table  7 — Rate  of  Mortality  While  in  Active  Service. 


CD  (H  cl  ni 

*?^d 

J 
MP 

•Si  fi  S:  CD        OCj  HH 

d   P 

i§ 

Age 

York  City 
ice    Force, 

2* 

ernal    Socii 
in  U.  S.  ai 
er.  Experiei 
thur  Hunt< 
1) 

•itish  Railw 
tem     (R. 
-dy     and 
*,  1905) 

piled  from 
ious  funds  ( 
Manly,  191 

Age 

York  City 
ice    Force, 

2* 

ernal      Soc 
in  U.  S.  a 
er.Experier 
thur   Hunt 
1) 

•itish  Railw 
tern     (R. 

•dy     and 
ig,  1905) 

piled  from 

"'os 
-  a 

o  o3 

New 
Pol 
191 

Frat 
ties 
Am 
(Ar 
191 

|IS 

+i  CO  C  W  r— {           -S  CO 

cj  »  5-5ai   W  > 

3.5  £  ; 

1* 

20 

.0026 

.0075 

.0041 

.0021 

50 

.0144 

.0129     .0 

126   .0 

089 

21 

.0026 

.0075 

.0044 

.0021 

51 

.0164 

.0136     .0 

138   .0 

094 

22 

.0027 

.0076 

.0046 

.0022 

52 

.0183 

.0144     .0 

148   .0 

098 

23 

.0027 

.0076 

.0046 

.0023 

53 

.0199 

.0152     .0 

158   .0 

103 

24 

.0027 

.0077 

.0046 

.0024 

54 

.0211 

.0161     .0 

167   .0 

109 

25 

.0028 

.0077 

.0044 

.0025 

55 

.0218 

.0172     .0 

174   .0 

115 

26 

.0029 

.0078 

.0043 

.0026 

56 

.0223 

.0184     .0 

182   .0 

122 

27 

.0031 

.0078 

.0042 

.0027 

57 

.0225 

.0197  *    .0 

191   .0 

133 

28 

.0034 

.0079 

.0041 

.0028 

58 

.0229 

.0211     .0 

202   .0 

149 

29 

.0037 

.0080 

.0041 

.0029 

59 

.0235 

.0227     .0 

217   .0 

166 

30 

.0040 

.0081 

.0042 

.0030 

60 

.0247 

.0244     .0 

233   .0 

186 

31 

.0045 

.0082 

.0044 

.0032 

61 

.0265 

.0268     .0 

250   .0 

212 

32 

.0049 

.0083 

.0045 

.0034 

62 

.0290 

.0294     .0 

264   .0 

242 

33 

.0054 

.0084 

.0046 

.0036 

63 

.0320 

.0323     .0 

275   .0 

274 

34 

.0059 

.0085 

.0046 

.0038 

64 

.0355 

.0354     .0 

279   .0 

307 

35 

.0063 

.0086 

.0046 

.0040 

65 

.0393 

.0389     .0 

283   .. 

36 

.0068 

.0087 

.0046 

.0042 

66 

.0432 

.0426     .0 

291 

37 

.0073 

.0088 

.0046 

.0044 

67 

.0472 

.0467     .0 

307   .. 

38 

.0077 

.0090 

.0046 

.0046 

68 

.0512 

.0512     .0 

336 

39 

.0080 

.0091 

.0046 

.0049 

69 

.0553 

.0560 

40 

.0082 

.0093 

.0048 

.0052 

70 

.0596 

.0614 

41 

.0084 

.0095 

.0051 

.0055 

71 

.0642 

.0671 

42 

.0086 

.0097 

.0056 

.0058 

72 

.0692 

.0733 

43 

.0088 

.0100 

.0063 

.0062 

73 

.0747 

.0798 

44 

.0090 

.0102 

.0070 

.0065 

74 

.0807 

.0867 

45 

.0092 

.0105 

.0079 

.0069 

75 

.0872 

.0941 

46 

.0095 

.0109 

.0088 

.0073 

76 

.0943 

.  1022 

47 

.0099 

.0113 

.0097 

.0077 

77 

.1020 

.1110 

48 

.0109 

.0117 

.0107 

.0081 

78 

.1103 

.  1208 

49 

.0125 

.0123 

.0116 

.0085 

*  Exclusive  of  mortality  resulting  from  service  accidents. 


The  rate  of  invalidity  or  disability  is  extremely  high,  and  seems  to 
explain  the  reason  for  the  comparatively  low  withdrawal  experience.  The 
rates  indicate  that  the  most  desirable  as  well  as  remunerative  mode  of  exit 
from  the  active  service  is  not  by  way  of  resignation  or  dismissal  but  rather 
by  means  of  the  disability  pension.  A  comparison  of  the  experience  of 
the  fund  with  an  ordinary  invalidity  table  or  the  experience  of  other  funds, 
shows  that  the  high  rate  cannot  be  the  result  of  ill  health  or  service  break- 
down alone,  but  must  be  the  consequence  of  persons  entering  the  disability 
pension  roll,  when  they  are  in  reality  not  permanently  disabled  or  in- 
validated, but  merely  suffering  from  temporary  impairment  or  disability. 
This  assumption  is  demonstrated  to  be  correct  by  the  mortality  experience 
among  the  disability  pensioners.  This  breaking  down  of  the  bars  between 
active  service  and  disability  pension  is  due  either  to  a  desire  of  the  em- 
ployees to  obtain  a  disability  pension  and  then  enter  a  new  field  of  em- 
ployment or  business,  or  to  the  administration's  desire  to  rid  the  active 


168 

force  of  members  without  the  embarrassment  which  might  be  caused  by 
dismissals.  The  comparison  of  the  disability  rates  in  the  police  force  with 
the  other  rates  given  in  the  following  table  shows  very  clearly  that  such  a  dis- 
parity in  liability  to  bona  fide  permanent  disability  could  hardly  exist. 


Table  8 — Rate  of  Invalidity. 


Age 

New  York  City 
Police    Force, 
1912 

Fraternal  Orders  in 
the  United  States 
(Arthur    Hunter, 
1911) 

New  South  Wales 
Government  Rail- 
ways and  Tram- 
ways, 1906 

various      funds 
(H.  W.  Manly, 
1910) 

CR 

New  York  City 
Police     Force, 
1912 

Fraternal  Orders  in 
the  United  States 
(Arthur    Hunter, 
1911) 

New  South  Wales 

government  nan- 
ways  and  Tram- 
ways, 1906 

Compiled     from 
various      funds 
(H.  W.  Manly, 
1910) 

20 

.0006 

.0005 

45 

.0473 

.0012   .C 

1029 

.0047 

21 

.0007 

.0005 

46 

.0542 

.0012   .C 

032 

.0053 

22 

.0009 

.0005 

47 

.0595 

.0013   .C 

1035 

.0059 

23 

.0010 

.0005 

48 

.0640 

.0014   .C 

1039 

.0068 

24 

.0011 

.0005 

.0001 

49 

.0669 

.0016   .C 

044 

.0080 

25 

.0012 

.0005 

.0002 

50 

.0686 

.0017   .C 

1052 

.0092 

26 

.0014 

.0005 

.0003 

51 

.0689 

.0019   .C 

075 

.0108 

27 

.0016 

.0005 

.0004 

52 

.0680 

.0020   .C 

100 

.0127 

28 

.0019 

.0005 

.0005 

53 

.0657 

.0022   .C 

125 

.0150 

29 

.0022 

.0006 

.0006 

54 

.0628 

.0025   .C 

150 

.0174 

30 

.0025 

.0006 

.0007 

0004     55 

.0582 

.0028   .C 

175 

.0200 

31 

.0029 

.0006 

.0008 

0006     56 

.0527 

.0031   .C 

200 

.0229 

32 

.0034 

.0006 

.0009 

0008     57 

.0470 

.0035   .C 

240 

.0260 

33 

.0039 

.0006 

.0010 

0010     58 

.0414 

.0040   .C 

300 

.0295 

34 

.0046 

.0006 

.0011 

0012     59 

.0354 

.0046    .C 

570 

.0333 

35 

.0055 

.0006 

.0012 

0014     60 

.0306 

.0054    .( 

900 

.1902 

36 

.0065 

.0007 

.0013 

0016     61 

.0264 

.0063    .3 

300 

.3002 

37 

.0076 

.0007 

.0014 

0019     62 

.0227 

.0074 

.4500 

38 

.0094 

.0007 

.0015 

0022     63 

.0190 

.0088 

.5000 

39 

.0118 

.0008 

.0016 

0024     64 

.0159 

.0104 

.5000 

40 

.0153 

.0008 

.0018 

0027     65 

.0128 

.0124 

41 

.0197 

.0009 

.0020 

0030     66 

.0100 

.  . » . . 

42 

.0259 

.0009 

.0022 

0034     67 

.0069 

43 

.0327 

.0010 

.0024 

0038     68 

.0045 

44 

.0400 

.0011 

.0026 

0042     69 

.0026 

As  the  employees  do  not  all  retire  as  soon  as  they  become  eligible  for 
regular  or  service  retirement,  no  certain  age  of  retirement  could  be  used; 
it  was  therefore  necessary  to  determine  the  rate  of  retirement  after  the 
employee  became  entitled  to  retire  on  a  regular  pension.  The  following 
table  shows  the  rates  obtained : 


Table  9 — Rate  of  Regular  or  Service 

Retirement. 

Age 

Rate 

Age 
63 

Rate 

Age 

Rate 

55 

.2008 

.1758 

71 

.1966 

56 

.1295 

64 

.1753 

72 

.2727 

57 

.1310 

65 

.1687 

73 

.3732 

58 

.1330 

66 

.1568 

74 

.4952 

59 

.1400 

67 

.1415 

75  • 

.6226 

60 

.1500 

68 

.1316 

76 

.7445 

61 

.1610 

69 

.1309 

77 

.8502 

62 
r 

.1711 

70 

.1508 

78 

.8897 

169 

Pensioners. 

Before  the  cards  were  received  and  tabulated  it  was  expected  that 
all  tables  for  pensioners  would  have  two  decrement  columns,  one  column 
showing  the  deaths  and  the  other  the  pension  revocations  or  withdrawals 
from  the  pension  roll.  On  the  completion  of  the  tabulation  it  was  found 
that  among  the  regular  and  disability  pensioners  combined,  there  had  been 
but  five  revocations  in  the  six-year  period.  As  it  was  possible  that  in  these 
cases  the  pensioners  had  been  restored  to  the  active  force,  it  was  con- 
sidered best  to  discard  them  and  thereby  reduce  the  regular  pensioners' 
tables  to  one-column  decrement  tables  similar  in  form  to  ordinary  mortal- 
ity tables.  In  the  case  of  widows  the  revocations  were  more  frequent  and 
were  of  importance,  since  this  experience  covered  the  pension  terminations 
caused  by  second  marriages. 

'Regular  or  Service  Pensioners. 

The  rate  of  mortality  among  members  on  the  regular  pension  roll  is 
shown  in  the  following  table.  The  mortality  is  slightly  higher  than  the 
American  experience  table  until  after  age  80.  This  might  be  expected 
among  employees  of  such  a  service  who  have  been  on  the  force  long  enough 
to  retire  on  regular  or  service  pensions. 


Table  10 — Rate  op  Mortality  Among  Regular  or  Service  Pensioners. 


Age 


55 
56 
57 

58 
59 
60 
61 
62 
63 
64 
65 
66 
67 
68 
69 
70 
71 
72 
73 
74 
75 
76 
77 


US 
|£2 


.0436 
.0449 
.0463 
.0478 
.0495 
.0513 
.0533 
.0554 
.0578 
.0603 
.0632 
.0662 
.0696 
.0732 
.0772 
.0814 
.0860 
.0909 
.0961 
.1017 
.1077 
.1141 
.1210 


cQ~ 

_,  <*  OS 
Eh  ^-'i-\ 
^  CO   ~ 

g  fl  03 
O   O  >-i 


.0383 
.0396 
.0410 
.0425 
.0441 
.0458 
.0477 
.0498 
.0523 
.0552 
.0584 
.0617 
.0650 
.0681 
.0709 
.0727 
.0750 
.0777 
.0809 
.0849 
.0901 
.0963 
.1032 


from 

funds 

Manly) 

from 

funds 

Manly) 

■   O 

MX! 

H 

Age 

U  o 

Pen- 
M.D. 

909) 

rs   _.  . 

d  <u 

tS 

0  s-''— i 

'O   .  . 

Compile 
various 
(H.  W 

03  O 

B  a 

2  G 
S  & 
< 

New  Yo 
Police 
1912 

Canadia 
sioners 
Grant, 

Compile 
various 
(H.  W 

.0186 

78 

.1284 

.1106 

.1030 

.0199 

79 

.1364 

.1185 

.1150 

.0213 

80 

.1450 

.1269 

.1280 

.0229 

81 

.1542 

.1360 

.1420 

.0247 

82 

.1641 

.1463 

.1570 

.0400 

.0267 

83 

.1747 

.1580 

.1730 

.0430 

.0289 

84 

.1860 

.1713 

.1900 

.0460 

.0313 

85 

.1984 

.1862 

.2060 

.0490 

.0339 

86 

.2117 

.2025 

.2220 

.0520 

.0369 

87 

.2263 

.2201 

.2400 

.0550 

.0401 

88 

.2424 

.2387 

.2590 

.0570 

.0437 

89 

.2597 

.2582 

.2790 

.0590 

.0476 

90 

.2782 

.2786 

.3010 

.0600 

.0520 

91 

.2974 

.3005 

.3230 

.0610 

.0568 

92 

.3141 

.3240 

.3480 

.0620 

.0620 

93 

.3299 

.3490 

.3710 

.0630 

.0677 

94 

.3507 

.3755 

.4000 

.0640 

.0737 

95 

.3843 

.4036 

.4250 

.0660 

.0802 

96 

.4455 

.4332 

.4580 

.0690 

.0870 

97 

.5614 

.4642 

.4830 

.0740 

.0944 

98 

.6750 

.4965 

.5000 

.0830 

.1023 

99 

.7500 

.5299 

.5330 

.0930 

.1111 

100 

1.0000 

.5710 

W  03 


s 


.1208 
.1317 
.1445 
.1586 
.  1743 
.1916 
.2114 
.2356 
.2657 
.3030 
.3467 
.3959 
.4545 
.5325 
.6343 
.7342 
.8571 
1.0000 


Disability)  or  Invalid  Pensioners. 

The  rate  of  mortality  among  the  employees  retired  because  of  ill 
health  is  very  much  lighter  than  could  reasonably  be  expected  among 


170 

persons  suffering  from  permanent  health  impairments.  The  rates  and 
comparisons  given  in  the  following  table  seem  to  bear  out  the  statement 
that  the  high  rate  of  disability  retirement  is  not  caused  solely  by  the  ill 
health  of  the  employees. 


Table  11 

— Rate  of  Mortality  Among  Disability  or 

Invalid  Pensioners. 

Age 

New  York  City 
Police     Force, 
1912 

Fraternal  Orders 
in  United  States 
(Franklin       B. 
Mead,  1910) 

Fraternal    Orders 
in   Canada   (Sid- 
ney H.  Pipe,  1909) 

oompuea     irom 
various      funds 
(H.  W.  Manly) 

> 

TO 

New  York  City 
Police    Force, 
1912 

Fraternal  Orders 

m  unueu  states 
(Franklin        B. 
Mead,  1910) 

Fraternal     Orders 
in   Canada   (Sid- 
ney H.  Pipe,  1909) 

Compiled     from 
various      funds 
(H.  W.  Manly) 

20 

.2740 

.4000 

.5380 

60 

.0449   .1 

270 

.1820 

.0700 

21 

.2597 

.3471 

.4500 

61 

.0479   .1 

270 

.1800 

.0660 

22 

.2452 

.3036 

.4060 

62 

.0502   .1 

271 

.1790 

.0620 

23 

.2310 

.2677 

.3730 

63 

.0539   .1 

271 

.1780 

.0580 

24 

.2173 

.2386 

.3460 

64 

.0565   .1 

272 

.1770 

.0540 

25 

.2037 

.2155 

.3220 

65 

.0602   .1 

272 

.1760 

.0550 

26 

.1910 

.1976 

.3080 

66 

.0650   .1 

273 

.1740 

.0570 

27 

.1784 

.1840 

.2950 

67 

.0688   .1 

273 

.1720 

.0600 

28 

.1659 

.1738 

.2830 

68 

.0740   .1 

274 

.1690 

.0680 

29 

.1535 

.1661 

.2740 

69 

.0797   .1 

275 

.1650 

.0790 

30 

.1408 

.1601 

.2650 

2700    70 

.0843   .1 

276 

.1600 

.0900 

31 

.1298 

.1552 

.2570 

2500    71 

.0904   .1 

278 

.1600 

.1000 

32 

.1195 

.1510 

.2490 

2320    72 

.0975   .1 

281 

.1620 

.1100 

33 

.1096 

.1464 

.2430 

2150    73 

.  1040   . 1 

285 

.1650 

.1200 

34 

.1002 

.1433 

.2370 

1990    74 

.1120   .1 

290 

.1680 

.1300 

35 

.0922 

.1406 

.2300 

1840    75 

.  1200   . 1 

297 

.1720 

.1400 

36 

.0840 

.1382 

.2250 

1710    76 

. 1300   . 1 

307 

.1760 

.1500 

37 

.0769 

.1361 

.2220 

1580    77 

.  1400   . 1 

322 

.1810 

.1620 

38 

.0702 

.1343 

.2180 

1470    78 

. 1500   . 1 

346 

.1860 

.1750 

39 

.0643 

.1328 

.2150 

1370    79 

. 1645   . 1 

385 

.1920 

.1890 

40 

.0600 

.1315 

.2120 

1280    80 

.1800   .1 

445 

.1980 

.2050 

41 

.0557 

.1304 

.2100 

1200    81 

.  1960 

.2050 

.2220 

42 

.0514 

.1295 

.2080 

1130    82 

.2140 

.2120 

.2400 

43 

.0480 

.1288 

.2060 

1080    83 

.2360 

.2200 

.2590 

44 

.0454 

.1282 

.2050 

1030    84 

.2570 

.2280 

.2790 

45 

.0424 

.1277 

.2030 

1000    85 

.2820 

.2360 

.3010 

46 

.0404 

.1273 

.2020 

0980    86 

.3120 

.2660 

.3230 

47 

.0390 

.1270 

.2020 

0960    87 

.3450 

.3030 

.3480 

48 

.0378 

.1268 

.2010 

0940    88 

.3840 

.3470 

.3710 

49 

.0365 

.1267 

.2000 

0920    89 

.4260 

.3960 

.4000 

50 

.0358 

.1267 

.1990 

0900    90 

.4695   .. 

.4550 

.4250 

51 

.0352 

.1267 

.1990 

0880    91 

.5150   .. 

.5320 

.4580 

52 

.0350 

.1267 

.1980 

0860    92 

.5603   .. 

.6340 

.4830 

53 

.0352 

.1268 

.1960 

0840    93 

.6100 

.7340 

.5000 

54 

.0360 

.1268 

.1950 

0820    94 

.6620 

.8570 

.5330 

55 

.0369 

.1268 

.1940 

0800    95 

.7220 

1.0000 

.5710 

56 

.0380 

.1269 

.1920 

0780    96 

.7945 

.6670 

57 

.0390 

.1269 

.1900 

0760    97 

.8740 

1.0000 

58 

.0408 

.1270 

.1870 

0740    98 

.9820 

59 

.0425 

.1270 

.1840 

0720    99 

1.0000 

Widow  Pensioners. 

The  rate  of  mortality  among  widow  pensioners  was  graduated  and, 
on  being  compared  with  other  rates  of  mortality,  was  found  to  be  very 


171 

nearly  the  same  as  that  of  the  Actuaries'  or  Combined  experience  table 
of  mortality.  On  applying  the  probability  of  death  from  the  combined 
table  to  the  actual  exposure  column,  in  the  ordinary  manner  of  checking 
by  comparing  actual  with  expected  deaths,  the  expected  deaths  were  so 
nearly  the  same  as  the  actual  deaths  that  it  seemed  better  to  use  it  in 
place  of  the  graduation  from  the  actual  data,  which,  although  it  checked 
a  little  closer  than  the  rates  of  the  Combined  table,  was  based  on  a  much 
smaller  experience  than  that  of  the  Combined  mortality  table. 


Table   12 — Rate   of  Mortality  and  Withdrawal  Among  Widow  Pensioners. 


Rate 

Rate 

Rate 

Rate 

Age 

of 

of 

Age 

of 

of 

Mortality 

Withdrawal 

Mortality 

Withdrawal 

20 

.0073 

.1032 

60 

.0303 

.0112 

21 

.0074 

.0970 

61 

.0326 

.0111 

22 

.0075 

.0908 

62 

.0351 

.0110 

23 

.0076 

.0846 

63 

.0378 

.0109 

24 

.0077 

.0785 

64 

.0408 

.0107 

25 

.0078 

.0726 

65 

.0441 

.0106 

26 

.0079 

.0668 

66 

.0476 

.0104 

27 

.0080 

.0613 

67 

.0515 

.0103 

28 

.0081 

.0562 

68 

.0556 

.0101 

29 

.0083 

.0515 

69 

.0600 

.0099 

30 

.0084 

.0473 

70 

.0649 

.0097 

31 

.0086 

.0435 

71 

.0702 

.0095 

32 

.0087 

.0401 

72 

.0758 

.0092 

33 

.0089 

.0371 

73 

.0819 

.0090 

34 

.0091 

.0344 

74 

.0885 

.0087 

35 

.0093 

.0319 

75 

.0956 

.0084 

36 

.0095 

.0297 

76 

.1032 

.0080 

37 

.0097 

.0277 

77 

.1115 

.0077 

38 

.0099 

.0258 

78 

.1204 

.0073 

39 

.0101 

.0242 

79 

.1301 

.0069 

40 

.0104 

.0227 

80 

.1404 

.0065 

41 

.0106 

.0214 

81 

.1514 

.0061 

42 

.0109 

.0202 

82 

.1632 

.0056 

43 

.0113 

.0192 

83 

.1759 

.0051 

44 

.0117 

.0182 

84 

.1897 

.0046 

45 

.0122 

.0174 

85 

.2051 

.0041 

46 

.0128 

.0166 

86 

.2225 

.0036 

47 

.0135 

.0159 

87 

.2422 

.0031 

48 

.0143 

.0152 

88 

.2653 

.0026 

49 

.0151 

.0146 

89 

.2924 

.0020 

50 

.0159 

.0141 

90 

.3237 

.0014 

51 

.0169 

.0136 

91 

.3610 

.0008 

52 

.0179 

.0132 

92 

.4053 

.0001 

53 

.0191 

.0128 

93 

.4572 

54 

.0203 

.0125 

94 

.5163 

55 

.0217 

.0122 

95 

.5843 

56 

.0231 

.0120 

96 

.6486 

57 

.0247 

.0117 

97 

.6923 

58 

.0264 

.0115 

98 

.7500 

59 

.0282 

.0114 

99 

1.0000 

The  rate  of  withdrawal  given  in  the  table  represents  the  combination 
of  pension  terminations  caused  by  remarriage  and  those  caused  by  revo- 
cations.   In  tabulating  the  data  the  terminations  caused  by  marriage  were 


172 

kept  separate  from  the  revocations,  but  they  are  not  divided  in  this  report, 
since  there  is  no  difference  between  the  termination  by  marriage  or  revoca- 
tion so  far  as  the  effect  on  the  valuation  is  concerned.  This  separation  in 
the  tabulation  was  made  merely  for  the  purpose  of  seeing  the  relation 
of  the  number  of  terminations  from  the  two  causes,  and  in  order  that  no 
retabulation  of  the  cards  would  be  necessary  to  get  this  experience  in  the 
event  of  a  valuation  being  made  of  widows'  pension  benefits  in  which  the 
objectionable  feature  of  discretionary  revocation  is  not  present. 

Children  Pensioners. 

The  paucity  of  data  regarding  the  mortality  among  children  pen- 
sioners made  it  useless  to  attempt  to  graduate  a  rate  of  mortality.  A  pub- 
lished table  of  mortality  was  adopted,  therefore,  which  appears  later  in 
the  report. 

Combined  Active  Members  and  Pensioners. 

While  no  actual  experience  table  is  shown,  the  rate  of  mortality  among 
the  combined  active  and  pension  forces  is  given.  The  following  table  shows 
the  mortality  graduated  from  a  combination  of  all  the  data,  and  gives  an 
idea  of  the  ordinary  mortality  of  policemen.  This  table  was  graduated 
directly  from  the  original  data,  and  was  used  in  some  of  the  calculations 
of  widows'  benefits. 


Table  13- 


-Rate  of  Mortality  in  Active  Force,  Modified  to  Include 
Regular  and  Disability  Pensioners'  Lives. 


N.  Y. 

Ameri- 

Com- 

N. Y. 

Ameri- 

Com- 

City 

can 

bined 

City 

can 

bined 

Age 

Police 

Experi- 

Experi- 

Age 

Police 

Experi- 

Experi- 

Force 

ence 

ence 

Force 

ence 

ence 

1912 

Table 

Table 

1912 

Table 

Table 

20 

.0027 

.0078 

.0073 

46 

.0170 

.0116 

.0128  . 

21 

.0028 

.0079 

.0074 

47 

.0181 

.0120 

.0135 

22 

.0029 

.0079 

.0075 

48 

.0193 

.0125 

.0143 

23 

.0030 

.0080 

.0076 

49 

.0205 

.0131 

.0151 

24 

.0032 

.0080 

.0077 

50 

.0214 

.0138 

.0159 

25 

.0034 

.0081 

.0078 

51 

.0235 

.0145 

.0169 

26 

.0037 

.0081 

.0079 

52 

.0249 

.0154 

.0179 

27 

.0040 

.0082 

.0080 

53 

.0265 

.0163 

.0191 

28 

.0043 

.0083 

.0081 

54 

.0281 

.0174 

.0203 

29 

.0047 

.0083 

.0083 

55 

.0299 

.0186 

.0217 

30 

.0051 

.0084 

.0084 

56 

.0319 

.0199 

.0231 

31 

.0055 

.0085 

.0086 

57 

.0339 

.0213 

.0247 

32 

.0060 

.0086 

.0087 

58 

.0364 

.0229 

.0264 

33 

.0065 

.0087 

.0089 

59 

.0384 

.0247 

.0282 

34 

.0070 

.0088 

.0091 

60 

.0410 

.0267 

.0303 

35 

.0077 

.0089 

.0093 

61 

.0440 

.0289 

.0326 

36 

.0083 

.0091 

.0095 

62 

.0464 

.0313 

.0351 

37 

.0094 

.0092 

.0097 

63 

.0496 

.0339 

.0378 

38 

.0097 

.0094 

.0099 

64 

.0525 

.0369 

.0408 

39 

.0104 

.0096 

.0101 

65 

.0558 

.0401 

.0441 

40 

.0112 

.0098 

.0104 

66 

.0594 

.0437 

.0476 

41 

.0121 

.0100 

.0106 

67 

.0628 

.0476 

.0515 

42 

.0130 

.0103 

.0109 

68 

.0668 

.0520 

.0556 

43 

.0139 

.0105 

.0113 

69 

.0707 

.0508 

.0601 

44 

.0148 

.0108 

.0117 

70 

.0751 

.0620 

.0649 

45 

.0159 

.0112 

.0122 

71 

.0800 

.0677 

.0702 

173 

Table  13 — Rate  of  Mortality  in  Active  Force,  Modified  to  Include 
Regular  and  Disability  Pensioners'  Lives — {Continued). 


N.  Y. 

Ameri- 

Com- 

N. Y.    Ameri- 

Com- 

City 

can 

bined 

City 

can 

bined 

Age 

Police 

Experi- 

Experi- 

Age 

Police   Experi- 

Experi- 

Force 

ence 

ence 

Force 

ence 

ence 

1912 

Table 

Table 

1912    Table 

Table 

72 

.0850 

.0737 

.0758 

87* 

.2422 

3030 

.2425 

73 

.0903 

.0802 

.0819 

88 

.2653 

3467 

.2653 

74 

.0964 

.0870 

.0885 

89 

.2924 

3959 

.2924 

75 

.1020 

.0944 

.  .0956 

90 

.3237 

4545 

.3237 

76 

.1090 

.1023 

.1032 

91 

.3610 

5325 

.3610 

77 

.1164 

.1111 

.1115 

92 

.4053 

6343 

.4053 

78 

.1242 

.1208 

.1204 

93 

.4572 

7342 

.4572 

79 

.1329 

.1317 

.1301 

94 

.5163 

8571 

.5163 

80 

.1432 

.1445 

.1404 

95 

.5843   1 

0000 

.5843 

81 

.1551 

.1586 

.1514 

96 

.6486 

.6486 

82 

.1684 

.1743 

.1632 

97 

.6923 

.6923 

83 

.1842 

.1916 

.1759 

98 

.7500 

.7500 

84 

.2016 

.2114 

.1897 

99 

1.0000 

1.0000 

85 

.2130 

.2356 

.2051 

100 

86 

.2299 

.2657 

.2222 

*  Extended  by  combined  Experience  Table. 


SERVICE    AND    MORTALITY    TABLES. 

The  rates  given  in  the  preceding  pages  were  used  in  the  construction 
of  the  active  service  table  and  the  various  pension  tables.  The  tables 
were  constructed  by  the  usual  method  of  applying  the  rates  for  each  age 
to  the  number  of  survivors  at  the  exact  age.  The  mortality  table  for 
children,  as  previously  explained,  was  not  constructed  from  the  experi- 
ence of  the  fund,  it  being  an  adopted  table.  The  table  shown  is  one  de- 
duced by  Mr.  Archibald  Hewat  from  an  experience  of  a  Scottish  Ministers' 
Widows  and  Orphans'  fund.  Each  symbol  used  in  the  tables  has  a  little 
letter  affixed  in  parenthesis  at  the  upper  right  hand  side  to  indicate  the 
table  as 


I  y  =  Number  living    in    active    force    at 

age  x. 
lx  =  Number  regular  pensioners  living  on 

fund  at  age  x. 
1%  =  Number  invalids  living  on  fund  at 
age  x. 


7(«0. 

*>  x  ' 

7(c)  . 

1    X 

](m). 


Number  widow  pensioners  living  on 

fund  at  age  x. 
■  Number  children  pensioners  living  on 

fund  at  age  x. 
i  Number  living  in  active  force  or  on 
pension  at  age  x. 


The  table  for  the  active  service  has  an  additional  column  which  shows 
the  adjusted  salary  scale.  The  scale  is  not  based  on  or  connected  with 
the  service  table  in  any  way,  but,  as  the  salary  scale  only  applies  to  mem- 
bers in  the  active  force,  it  seems  appropriate  to  combine  the  two. 

These  tables  indicate  the  experience  of  the  fund  during  the  six-year 
period.  Any  probability  relating  to  persons  in  a  certain  class  can  be 
figured  from  the  table  for  that  class.  For  instance  in  the  active  service 
table  the  llf  column  shows  the  number  living  and  surviving  at  any  exact  age 
x,  and  the  other  columns  show  the  number  of  persons  out  of  these  who  will 
leave  the  active  force  from  the  various  causes  during  the  year,  or  between 


174 

the  ages  x  and  x  +  1.  At  age  20  the  table  shows  that  out  of  100,000 
persons  living  at  the  beginning  of  the  year,  5635  will  resign  or  be  dis- 
missed, none  of  them  will  be  accidentally  killed  while  on  duty,  260  will 
die,  61  retire  because  of  disability,  and  that  none  of  them  will  be  retired 
on  service  pension.  Since  (5635  -{-  260  -j-  61  =  5956)  5956  leave  the  ac- 
tive service  between  ages  20  and  21,  there  will  be  (100,000  —  5956  = 
94,044)  94,044  persons  who  will  survive  to  exact  age  21.  This  process 
continues  throughout  the  table.  The  column  s  (f  shows  the  scale  salary 
at  each  age,  and  the  ratio  between  the  scale  salary  at  various  ages  gives  the 
relative  probable  increase  or  decrease  in  the  salary  of  any  employee.  A 
simple  example  of  the  use  of  this  table  is  as  follows: 

What  will  be  the  number  of  persons  on,  and  the  amount  of,  the  payroll 
5  years  from  date,  covering  the  survivors  of  500  employees,  who  are  at 
present  20  years  of  age  and  drawing  average  salaries  of  $800  per  annum? 

The  number  of  persons  is — 

iM.  x  500      79,438X500 

I®  100,000    -d97-19 

The  amount  of  the  payroll  is — 

S-MlM  v  500  X  800  -  79,438  X  984  X  500  X  800  _ 

s  (a)  j  <«)  X  500  X  800  -  -  $400,850 .  67 

°  20   L  20  ' 

This  gives  397  persons  surviving  at  age  of  25  out  of  the  500  living  at  age 
20.  Since  the  payroll  is  $400,856  at  age  25,  the  average  salary  of  the  em- 
ployees at  that  time  might  be  obtained  by  dividing  the  total  salary  by  the 
number  of  employees,  as: 

—    '       '      =  $1,009.23  =  Average  salary  of  survivors  at  age  25. 

This  could  be  obtained  directly  from  the  table  and  the  average  salary  at 
age  20,  since: 

*25 


and 


,  .  =  Rate  of  increase  in  salary. 

6  20 


!|x  800  -  *^9?  =  $1,009.23 

^20 


Both  methods  give  the  probable  average  salary  of  $1009  as  the  amount 
of  the  employees'  average  pay  on  reaching  age  25.  As  a  matter  of  fact, 
probably  not  a  single  one  of  the  survivors  will  be  drawing  a  salary  of 
exactly  $1009  per  annum  at  age  25,  but  on  the  average  this  has  been  the 
amount  which  employees  at  this  age  have  drawn  during  the  six-year 
period. 

Note:    The  example  given  is  merely  to  illustrate  the  use  of  the  tables;  the  rules  of 
the  Department  do  not  permit  the  employment  of  minors. 


175 


Table  14- 

—Active 

Service  Table  and  Salary  Scale 

Acci- 
dentally 
Dying 

Dis- 

B 

„egu- 

Age 

Living       Wi 
dra\ 

th- 
ving 

Other 
Deaths 

ability 
Retire- 
ments 

R 

n 

etfre-       Total 
lents        Decrf 

Salary 
Scale 

ment 

7  («) 

(a) 

X 

ad^ 

•dc? 

*  r  (o) 

'       X 

0 

r  («) 

'       X 

Sx 

20 

100,000      5,6 

35 

260 

61 

5,956 

780 

21 

94,044      4,4 

74 

247 

67 

4,788 

814 

22 

89,256      3,5 

70 

1 

237 

76 

3,890 

850 

23 

85,366      2,8 

82 

12 

230 

82 

3,206 

891 

24 

82,160      2,3 

90 

17 

225 

90 

2,722 

936 

25 

79,438      2,0 

43 

20 

225 

99 

2,387 

984 

26 

77,051       1,8 

04 

23 

227 

109 

2,163 

1,037 

27 

74,888       1,6 

29 

25 

234 

118 

2,006 

1,091 

28 

72,882       1,4 

78 

26 

246 

135 

1,885 

1,145 

29 

70,997       1,3 

21 

26 

260 

153 

1,760 

1,198 

30 

69,237       1,1 

60 

26 

279 

172 

1,637 

1,248 

31 

67,600         9 

92 

26 

301 

196 

1,515 

1,296 

32 

66,085         8 

31 

26 

323 

225 

1,405 

1,339 

33 

64,680         6 

94 

26 

346 

255 

1,321 

1,377 

34 

63,359          5 

91 

25 

371 

294 

1,281 

1,411 

35 

62,078          5 

17 

25 

394 

339 

1,275 

1,439 

36 

60,803          4 

71 

25 

414 

394 

1,304 

1,464 

37 

59,499         4 

45 

24 

433 

454 

1,356 

1,484 

38 

58,143          4 

23 

24 

445 

546 

1,438 

1,502 

39 

56,705          4 

00 

24 

451 

672 

1,547 

1,518 

40 

55,158         3 

72 

23 

452 

841 

1,688 

1,533 

41 

53,470         3 

36 

23 

449 

1,056 

1,864 

1,547 

42 

51,606         2 

92 

23 

444 

1,336 

2,095 

1,558 

43 

49,511          2 

47 

23 

435 

1,617 

2  322 

1,568 

44 

47,189          2 

02 

23 

424 

1,885 

'.  '.  '.          2^534 

1,577 

45 

44,655          1 

60 

24 

411 

2,112 

2,707 

1,584 

46 

41,948          1 

26 

27 

398 

2,272 

2,823 

1,591 

47 

39,125 

99 

30 

386 

2,330 

2,845 

1,597 

48 

36,280 

79 

30 

394 

2,322 

2,825 

1,604 

49 

33,455 

65 

28 

418 

2,238 

2,749 

1,612 

50 

30,706 

55 

26 

443 

2,105 

2,629 

1,620 

51 

28,077 

47 

21 

461 

1,934 

2,463 

1,629 

52 

25,614 

41 

14 

470 

1,743 

2,268 

1,640 

53 

23,346 

37 

9 

465 

1,533 

2,044 

1,653 

54 

21,302 

32 

5 

450 

1,338 

1,825 

1,669 

55 

19,477 

27 

3 

425 

1,133 

3 

,912         5,500 

1,685 

56 

13,977 

18 

1 

311 

737 

1 

,810         2,877 

1,700 

57 

11,100 

12 

250 

521 

1 

,454         2,237 

1,713 

58 

8,863 

7 

203 

367 

1 

,179          1,756 

1,721 

59 

7,107 

4 

167 

251 

995          1,417 

1,722 

60 

5,690 

2 

141 

174 

854          1,171 

1,716 

61 

4,519 

1 

120 

119 

727            967 

1,705 

62 

3,552 

103 

80 

608            791 

1,690 

63 

2,761 

88 

53 

485            626 

1,674 

64 

2,135 

76 

34 

374            484 

1,658 

65 

1,651 

65 

21 

279            365 

1,643 

66 

1,286 

56 

13 

202            271 

1,630 

67 

1,015 

48 

7 

144             199 

1,618 

68 

816 

42 

4 

107             153 

1,607 

69 

663 

37 

2 

87             126 

1,598 

70 

537 

32 

81            113 

1,589 

71 

424 

27 

83            110 

1,581 

72 

314 

22 

86             108 

1,573 

73 

206 

15 

77              92 

1,565 

74 

114 

9 

56              65 

1,557 

75 

49 

4 

31              35 

1,547 

76 

14 

1 

10              11 

1,534 

77 

3 

3                3 

1,517 

176 


Table  15 — Regular  Pensioners'  Mortality  Table. 


■   1 

Living 

Dying 

Living 

Dying 

Age 

/  (p) 

*>      X 

d^ 

Age 

/(P) 

1     X 

d<? 

50 

2,017 

79 

76 

375 

43 

51 

1,938 

77 

77 

332 

40 

52 

1,861 

75 

78 

292 

37 

53 

1,786 

74 

79 

255 

35 

54 

1,712 

73 

80 

220 

32 

55 

1,639 

71 

81 

188 

29 

56 

1,568 

70 

82 

159 

26 

57 

1,498 

69 

83 

133 

23 

58 

1,429 

68 

84 

110 

20 

59 

1,361 

67 

85 

90 

18 

60 

1,294 

66 

86 

72 

15 

61 

1,228 

65 

87 

57 

13 

62 

1,163 

64 

88 

44 

11 

63 

1,099 

64 

89 

33 

9 

64 

1,035 

62 

90 

24 

7 

65 

973 

61 

91 

17 

5 

66 

912 

60 

92 

12 

4 

67 

852 

59 

93 

8 

3 

68 

793 

58 

94 

5 

2 

69 

735 

57 

95 

3 

1 

70 

678 

55 

96 

2 

1 

71 

623 

54 

97 

1 

*  .56 

72 

569 

52 

98 

*   .44 

.30 

73 

517 

50 

99 

.14 

.11 

74 

467 

47 

100 

.03 

.03 

75 

420 

45 

*  Decimals  were  used  to  avoid  necessity  for  larger  radix. 


177 


Table  16 — Invalid  Pensioners'  Mortality  Table. 


Living 

Dying 

Living 

Dying 

Age 

7(0 
t-  x 

d® 

Age 

7  f») 

1  X 

d* 

20 

100,000 

27,400 

60 

1,377 

62 

21 

72,600 

18,851 

61 

1,315 

63 

22 

53,749 

13,177 

62 

1,252 

63 

23 

40,572 

9,372 

63 

1,189 

64 

24 

31,200 

6,778 

64 

1,125 

64 

25 

24,422 

4,974 

65 

1,061 

64 

26 

19,448 

3,714 

66 

997 

65 

27 

15,734 

2,806 

67 

932 

64 

28 

12,928 

2,144 

68 

868 

64 

29 

10,784 

1,655 

69 

804 

64 

30 

9,129 

'  1,285 

70 

740 

62 

31 

7,844 

1,018 

71 

678 

61 

32 

6,826 

815 

72 

617 

60 

33 

6,011 

659 

73 

557 

58 

34 

5,352 

536 

74 

499 

56 

35 

4,816 

444 

75 

443 

53 

36 

4,372 

367 

76 

390 

51 

37 

4,005 

308 

77 

339 

47 

38 

.  3,697 

259 

78 

292 

44 

39 

3,438 

.  221 

79 

248 

41 

40 

3,217 

193 

80 

207 

37 

41 

3,024 

168 

81 

170 

33 

42 

2,856 

147 

82 

137 

29 

43 

2,709 

130 

83 

108 

25 

44 

2,579 

117 

84 

83 

21 

45 

2,462 

104 

85 

62 

17 

46 

2,358 

95 

86 

45 

14 

47 

2,263 

88 

87 

31 

11 

48 

2,175 

82 

88 

20 

8 

49 

2,093 

76 

89 

12 

5 

50 

2,017 

72 

90 

7 

3 

51 

1,945 

68 

91 

4 

2 

52 

1,877 

66 

92 

2 

1 

53 

1,811 

64 

93 

1 

*  .610 

54 

1,747 

63 

94 

*  .390 

.258 

55 

1,684 

62 

95 

.132 

.095 

56 

1,622 

62 

96 

.037 

.029 

57 

1,560 

61 

97 

.008 

.007 

58 

1,499 

61 

98 

.001 

.00098 

59 

1,438 

61 

99 

.00002 

.00002 

*  Decimals  were  used  to  avoid  necessity  for  larger  radix. 


178 


Table  17- 

-Widow  Pensioners'  Mortality  and  Withdrawal  Table 

Revoca- 

Revoca- 

tions 

tions 

Living 

Dying 

or 

Total 

Living 

Dying 

or 

Total 

Age 

7  («>) 
«-    X 

d<»> 

With- 

Decre- 

Age 

7  (u» 

1       X 

t     \ 

With- 

Decre- 

drawals 

(w) 

ment 

d(wJ 

drawals 

ment 

18 

100,000 

713 

11,556 

12,269 

59 

11,174 

316 

127 

443 

19 

87,731 

632 

9,598 

10,230 

60 

10,731 

326 

120 

446 

20 

77,501 

565 

7,999 

8,564 

61 

10,285 

335 

114 

449 

21 

68,937 

509 

6,689 

7,198 

62 

9,836 

345 

108 

453 

22 

61,739 

461 

5,609 

6,070 

63 

9,383 

355 

102 

457 

23 

55,669 

421 

4,712 

5,133 

64 

8,926 

364 

96 

460 

24 

50,536 

387 

3,969 

4,356 

65 

8,466 

373 

90 

463 

25 

46,180 

359 

3,352 

3,711 

66 

8,003 

381 

83 

464 

26 

42,469 

335 

2,837 

3,172 

67 

7,539 

388 

77 

465 

27 

39,297 

315 

2,409 

2,724 

68 

7,074 

394 

71 

465 

28 

36,573 

298 

2,056 

2,354 

69 

6,609 

397 

65 

462 

29 

34,219 

283 

1,763 

2,046 

70 

6,147 

399 

59 

458 

30 

32,173 

271 

1,521 

1,792 

71 

5,689 

399 

54 

453 

31 

30,381 

261 

1,321 

1,582 

72 

5,236 

397 

48 

445 

32 

28,799 

252 

1,155 

1,407 

73 

4,791 

392 

43 

435 

33 

27,392 

244 

1,016 

1,260 

74 

4,356 

385 

38 

423 

34 

26,132 

238 

898 

1,136 

75 

3,933 

376 

33 

409 

35 

24,996 

232 

797 

1,029 

76 

3,424 

353 

27 

380 

36 

23,967 

227 

711 

938 

77 

3,044 

339 

23 

362 

37 

23,029 

223 

637 

860 

78 

2,682 

323 

20 

343 

38 

22,169 

220 

573 

793 

79 

2,339 

304 

16 

320 

39 

21,376 

217 

517 

734 

80 

2,019 

283 

13 

296 

40 

20,642 

214 

469 

683 

81 

1,723 

261 

10 

271 

41 

19,959 

212 

427 

639 

82 

1,452 

237 

8 

245 

42 

19,320 

210 

391 

601 

83 

1,207 

212 

6 

218 

43 

18,719 

211 

359 

570 

84 

989 

188 

5 

193 

44 

18,149 

212 

331 

543 

85 

796 

163 

3 

166 

45 

17,606 

215 

306 

521 

86 

630 

140 

2 

142 

46 

17,085 

219 

284 

503 

87 

488 

118 

2 

120 

47 

16,582 

224 

264 

488 

88 

368 

98 

1 

99 

48 

16,094 

230 

245 

475 

89 

269 

79 

1 

80 

49 

15,619 

235 

229 

464 

90 

189 

61 

61 

50 

15,155 

242 

214 

456 

91 

128 

46 

46 

51 

14,699 

248 

200 

448 

92 

82 

33 

33 

52 

14,251 

256 

188 

444 

93 

49 

22 

22 

53 

13,807 

264 

177 

441 

94 

27 

14 

14 

54 

13,366 

271 

167 

438 

95 

13 

8 

8 

55 

12,928 

280 

158 

438 

96 

5 

3 

3 

56 

12,490 

289 

149 

438 

97 

2 

1 

1 

57 

12,052 

297 

141 

438 

98 

1 

*     .75 

*     .75 

58 

11,614 

306 

134 

440 

99 

*     .25 

.25 

.25 

Decimals  were  used  to  avoid  necessity  for  larger  radix. 


179 


Table  18 — Children  Pensioners'  Mortality  Table. 


Living 

Dying 

Living 

1 
Dying 

Age 

7(0 

1     X 

d« 

Age 

7  (c) 

v     X 

d™ 

0 

10,000 

620 

11 

8,717 

35 

1 

9,380 

150 

12 

8,682 

26 

2 

9,230 

92 

13 

8,656 

17 

3 

9,138 

83 

14 

8,639 

18 

4 

9,055 

72 

15 

8,621 

25 

5 

8,983 

63 

16 

8,596 

34 

6 

8,920 

53 

17 

8,562 

35 

7 

8,867 

45 

18 

8,527 

43 

8 

8,822 

35 

19 

8,484 

50 

9 

8,787 

35 

20 

8,434 

51 

10 

8,752 

35 

21 

8,383 

Table  19 — Combined  Mortality  Table  or  Active  Service  Mortality  Table,  Modi- 
fied to  Include  Regular  and  Disability  Pensioners'  Lives. 


Age 


20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
51 
52 
53 
54 
55 
56 
57 
58 
59 


Living 


(to) 


100,000 
99,734 
99,455 
99,169 
98,871 
98,552 
98,215 
97,852 
97,461 
97,044 
96,591 
96,103 
95,574 
95,001 
94,386 
93,722 
93,005 
92,235 
91,371 
90,485 
89,545 
88,542 
87,474 
86,335 
85,137 
83,878 
82,549 
81,144 
79,672 
78,131 
76,529 
74,890 
73,133 
71,313 
69,427 
67,476 
65,462 
63,377 
61,229 
59,003 


Dying 


d 


(«) 


266 

279 

286 

298 

319 

337 

363 

391 

417 

453 

488 

529 

573 

615 

664 

717 

770 

864 

886 

940 

1,003 

1,068 

1,139 

1,198 

1,259 

1,329 

1,405 

1,472 

1,541 

1,602 

1,639 

1,757 

1,820 

1,886 

1,951 

2,014 

2,085 

2,148 

2,226 

2,263 


Age 


60 
61 
62 
63 
64 
65 
66 
67 
68 
69 
70 
71 
72 
73 
74 
75 
76 
77 
78 
79 
80 

81 

82 

83 

84 

85 

86 

87 

88 

89 

90 

91 

92 

93 

94 

95 

96 

97 

98 

99 


Living 


(to) 


56,740 
54,414 
52,023 
49,612 
47,154 
44,681 
42,190 
39,686 
37,194 
34,711 
32.259 
29^836 
27,449 
25,116 
22,849 
20,647 
18,542 
16,521 
14,599 
12,786 
11,087 
9,499 
8,026 
6,675 
5,445 
4,347 
3,421 
2,635 
1,997 
1,467 
1,038 
702 
449 
267 
145 
70 
29 
10 
3 
1 


Dying 


d 


(TO) 


2,326 

2,391 

2,411 

2,458 

2,473 

2,491 

2,504 

2,492 

2,483 

2,452 

2,423 

2,387 

2,333 

2,267 

2,202 

2,105 

2,021 

1,922 

1,813 

1,699 

1,588 

1,473 

1,351 

1,230 

1,098 

926 

786 

638 

530 

429 

336 

253 

182 

122 

75 

41 

19 

7 

2 

1 


ISO 


FAMILY   HISTORY. 

The  valuation  of  benefits  which  embrace  pensions  to  widows  and 
children  necessitated  figures  showing  the  probability  of  a  member  leaving 
a  widow  and  the  age  of  the  widow  at  his  death,  also  the  probability  of  a 
man  leaving  children  and  the  ages  of  such  children.  As  the  records  at 
police  headquarters  did  not  furnish  the  data  required  for  investigating 
the  conditions  in  the  service,  it  was  necessary  to  adopt  the  experience  of 
another  fund  as  reflecting  these  conditions.    The  following  table  shows  the 

Table  20 — Showing  the  Conjugal  Relation  of  Employees,  the  Corresponding 
Age  of  the  Wife  to  That  of  the  Husband  Dying,  and  the  Number  of  Employees 
Who  Leave  Children,  Together  With  the  Average  Age  of  the  Youngest  Child. 


Proportion  of 

Average 

Proportion  of 

Average 

Those  Dying 

Age  of 

Age 

Those  Dying 

Age  of 

Age 

of 

Who 

of 

Who 

Employee 

Who 

Leave 

Young- 

Employee 

Who 

Leave 

Young- 

are Hus- 

Children 

Wife 

est 

are  Hus- 

Children 

Wife 

est 

bands 

age  17  or 
tinder 

Child 

bands 

age  17  or 
Under 

Child 

20 

.002 

.001 

22.0 

.5 

59 

.668 

.605 

50.1 

8.7 

21 

.006 

.003 

22.4 

.6 

60 

.667 

.593 

51.0 

9.2 

22 

.017 

.009 

22.8 

.7 

61 

.665 

.577 

51.9 

9.6 

23 

.036 

.020 

23.2 

.7 

62 

.662 

.557 

52.8 

10.1 

24 

.058 

.034 

23.6 

.8 

63 

.656 

.532 

53.7 

10.5 

25 

.088 

.057 

24.0 

.9 

64 

.650 

.502 

54.6 

10.9 

26 

.117 

.078 

24.8 

1.0 

65 

.640 

.468 

55.5 

11.3 

27 

.149 

.103 

25.6 

1.0 

66 

.629 

.431 

56.5 

11.6 

28 

.185 

.134 

26.4 

1.1 

67 

.616 

.390 

57.5 

12.0 

29 

.245 

.184 

27.2 

1.2 

68 

.601 

.349 

58.5 

12.3 

30 

.295 

.228 

28.0 

1.3 

69 

.586 

.309 

59.5 

12.6 

31 

.344 

.274 

28.7 

1.3 

70 

.569 

.270 

60.5 

12.9 

32 

.390 

.320 

29.4 

1.4 

71 

.551 

.233 

61.5 

13.2 

33 

.434 

.364 

30.1 

1.5 

72 

.534 

.200 

62.5 

13.4 

34 

.481 

..411 

30.8 

1.6 

73 

.515 

.170 

63.5 

13.6 

35 

.526 

.457 

31.5 

1.7 

74 

.496 

.144 

64.5 

13.9 

36 

.563 

.496 

32.1 

1.8 

75 

.476 

.122 

65.5 

14.1 

37 

.593 

.529 

32.7 

1.9 

76 

.455 

.103 

66.5 

14.3 

38 

.617 

.558 

33.3 

2.0 

77 

.432 

.088 

67.5 

14.4 

39 

.632 

.575 

33.9 

2.1 

78 

.408 

.076 

68.5 

14.6 

40 

.643 

.590 

34.5 

2.3 

79 

.385 

.066 

69.5 

14.7 

41 

.648 

.600 

35.2 

2.5 

80 

.361 

.058 

70.5 

14.8 

42 

.657 

.612 

35.9 

2.6 

81 

.334 

.050 

71.5 

15.0 

43 

.665 

.620 

36.6 

2.8 

82 

.315 

.046 

72.5 

15.1 

44 

.672 

.629 

37.3 

3.0 

83 

.293 

.042 

73.5 

15.2 

45 

.677 

.635 

38.0 

3.3 

84 

.271 

.039 

74.5 

15.2 

46 

.679 

.639 

38.8 

3.5 

85 

.249 

.037 

75.5 

15.3 

47 

.680 

.641 

39.6 

3.8 

86 

.227 

.034 

76.5 

15.4 

48 

.678 

.640 

40.4 

4.1 

87 

.208 

.031 

77.5 

15.5 

49 

.678 

.642 

41.2 

4.5 

88 

.185 

.028 

78.5 

15.6 

50 

.679 

.643 

42.0 

4.8 

89 

.164 

.025 

79.5 

15.6 

51 

.680 

.644 

42.9 

5.2 

90 

.142 

.022 

80.5 

15.7 

52 

.681 

.646 

43.8 

5.6 

91 

.125 

.021 

81.5 

15.8 

53 

.680 

.645 

44.7 

6.0 

92 

.103 

.018 

82.5 

15.9 

54 

.678 

.641 

45.6 

6.4 

93 

.092 

.017 

83.5 

15.9 

55 

.676 

.638 

46.5 

6.9 

94 

.077 

.014 

84.5 

16.0 

56 

.673 

.632 

47.4 

7.3 

95 

.071 

.013 

85.5 

16.1 

57 

.671 

.625 

48.3 

7.8 

96 

.053 

.010 

86.5 

16.2 

58 

.670 

.618 

49.2 

8.2 

97 

.038 

.008 

87.5 

16.2 

181 

rates  adopted,  which  are  based  on  those  given  by  Mr.  Henry  William 
Manly  in  one  of  his  valuable  papers  on  pension  funds.  The  rates  are 
founded  on  the  experience  of  the  widows'  funds  of  Scottish  bankers  and 
the  statistics  of  the  colony  of  New  Zealand.  These  assumed  rates  probably 
slightly  overstate  the  cost  of  annuities  to  dependents,  but  they  were 
adopted  in  this  case,  as  they  were  among  the  best  available  in  a  form  suit- 
able for  use. 


REASONS  FOR  CALCULATING  THE  COST  BY  YEARS.  AND  THE 

AMOUNT  OF  THE  CONTINUING  LIABILITY  AS  WELL 

AS  MAKING  AN  ORDINARY  VALUATION. 

In  the  valuation  of  a  pension  fund  the  ordinary  presentation  and 
comparison  of  present  values  of  assets  and  liabilities  should  be  entirely 
ample.  To  an  actuary  or  one  acquainted  with  the  use  and  meaning  of 
present  values,  a  distribution  of  cost  by  years  is  unnecessary ;  however,  in 
the  establishment  of  a  pension  scheme  or  where  it  is  considered  necessary 
to  impress  all  concerned  with  the  actual  condition  of  a  fund,  such  distri- 
bution is  very  useful.  In  the  present  case,  where  it  is  necessary  to  make 
the  meaning  of  the  valuation  very  clear  to  any  person  who  is  interested, 
such  a  valuation  is  not  only  useful  but  highly  essential,  since  a  mere 
presentation  of  present  values  would  not  be  readily  appreciated  by  the 
layman.  Owing  to  the  fact  that  there  is,  under  the  present  conditions,  no 
reserve  accumulated,  and  hence  no  interest  factor  involved,  a  presentation 
of  present  values  with  an  interest  factor  would  hardly  be  very  helpful.  If 
the  present  conditions  are  allowed  to  continue,  the  City  will  be  called  upon 
to  raise  the  funds  every  year  as  they  become  payable,  and  it  is  the  amount 
of  these  appropriations,  or  annual  payments,  which  it  is  desired  to  know 
in  advance.  The  ordinary  valuation,  showing  the  present  values,  which 
involve  an  interest  factor,  is  also  given,  in  order  to  show  the  effect  of  the 
operation  of  interest  on  the  accumulations  of  the  pension  fund. 


THE    YEARLY   DISTRIBUTION    OF    COST. 

The  difficulty  of  the  calculations  involved  in  the  presentation  of  a 
valuation  in  a  form  which  shows  the  yearly  cost  can  hardly  be  appreciated 
when  compared  with  the  amount  of  labor  involved  in  making  an  ordinary 
valuation.  The  valuation  of  a  varying  annuity,  such  as  one  based  on  final 
salary,  which  may  be  entered  upon  at  any  time,  as  on  the  occurrence  of 
disability,  is  a  task  which  involves  some  very  pretty  formulae,  but  when  it 
is  desired  to  show  the  same  distributed  by  years  the  methods  which  are 
necessary  present  no  little  difficulty.  Mention  need  only  be  made  of  the 
additional  provisions  that  an  annuity  of  a  different  amount  will  go  to 
the  widow  or  children  of  the  first  annuitant  to  give  an  idea  of  the  cal- 
culations necessary.  These  facts  are  mentioned  because  of  the  view 
which  is  sometimes  taken  that  calculations  of  this  nature  are  made  by 
simply  distributing  values  by  means  of  a  mortality  table.  It  is  only  neces- 
sary to  refer  to  some  of  the  distributions  of  cost  as  shown  in  this  report 
to  see  that  any  such  procedure  would  involve  an  almost  endless  amount  of 


182 

time  and  labor  with  a  cost  which  would  make  it  both  impractical  and  pro- 
hibitive. Because  of  these  difficulties  and  of  the  time  and  space  required, 
it  has  been  considered  inadvisable  to  discuss  the  actual  methods  used  in 
the  calculation  of  costs. 


THE    VALUATION. 

The  valuation  which  is  given,  and  which  involves  a  4  per  cent,  interest 
factor,  was  made  by  discounting  the  results  obtained  in  the  annual  cost 
distribution. 


THE    CONTINUING    LIABILITIES. 

The  continuing  liabilities  were  calculated  on  the  assumption  of  a  uni- 
form increment  to  the  service.  On  a  uniform  annual  increment  the  service 
would  gradually  reach  a  stage  where  the  decrement  exactly  equaled  the 
increment,  and  would  then  remain  the  same  as  to  the  number  of  employees. 
At  this  stage  the  number  of  pensioners  will  remain  in  a  fixed  ratio  to  the 
number  of  employees  in  the  active  force,  and  the  pension  system  will  have 
reached  its  normal  load. 


ADJUSTMENTS. 

Since  the  payments  of  pensions  are  made  in  monthly  installments,  it 
seemed  best  to  modify  the  calculations  in  order  to  allow  for  deaths  during 
the  year.  All  of  the  calculations  were  adjusted,  therefore,  so  as  to  take 
into  account  a  uniform  monthly  decrement  of  one-twelfth  the  annual  decre- 
ment for  the  year.  Such  a  method  reflects  the  actual  working  of  the  fund 
as  closely  as  necessary,  although  a  disregard  of  this  adjustment  could  not 
have  affected  the  results  very  materially. 


THE    PRESENT    ACTIVE    AND    PENSION    SERVICES. 

In  making  up  the  payroll  for  the  entire  active  force  by  age  and  length 
of  service,  it  was  necessary  to  adopt  some  certain  date  on  which  to  make 
the  valuation.  After  making  a  few  assortments  of  the  cards  it  became 
evident  that  February  1,  1913,  was  the  best  date  to  use  as  such  starting 
point,  as  it  is  the  first  day  of  a  calendar  month  and  the  latest  of  such  dates 
on  which  the  information  showed  the  exact  condition  of  the  service.  Con- 
sequently it  was  thought  best  to  use  this  time,  as  it  brings  the  valuation  to 
the  nearest  possible  date.  In  checking  the  cards  to  the  totals  published 
by  the  police  authorities  it  was  found  that  18  pensioners  did  not  appear 
on  the  list;  these  were,  therefore,  not  considered  in  the  check;  but  on  in- 
vestigation of  the  cause  of  this  inconsistency  it  was  found  that  they  were 
bona  fide  pensioners,  who  had  been  omitted  because  they  were  either  in 
receipt  of  but  nominal  pensions  of  one  dollar  or  less  or  had  entered  the 
pension  roll  too  late  to  be  included  in  the  lists  before  they  were  sent  to 
press.    These  cards  were  included  in  the  valuation. 


183 

The  employees  and  pensioners  who  were  active  on  February  1,  1913, 
and  upon  whom  the  valuation  was  made,  are  shown  in  the  following 
tables.  The  table  showing  the  number  of  active  members  and  their  salaries 
classified  by  age  and  length  of  service  is  not  shown  here  because  of  its 
size.  The  table  actually  used  required  a  sheet  for  each  age  of  employees. 
It  must  be  noted  at  this  point  that  these  figures  represent  the  basis  of  the 
actuarial  valuation ;  they  show  all  salaries  and  pensions  in  whole  numbers, 
and  were  not  taken  from  the  actual  payroll  of  the  police  force.  If  one  man 
drew  both  a  salary  and  a  pension  he  was  treated  as  two  men;  if  a  man 
drew  one  salary  for  eleven  months  of  the  year  and  another  for  one  month 
he  is  considered  as  on  the  force  at  the  salary  which  he  drew  for  the  maxi- 
mum period.  The  dependent  parent  pensioners  are  included  in  the  table 
for  widows  throughout  the  report.  The  age  given  represents  the  nearest 
year. 


Table  21 — Showing  By  Age  the  Number  and  Salary  of  All  Employees 
op  the  New  York  City  Police  Force. 


Age 

Number 

Salary 

Age 

Number 

Salary 

22 

1 

$900 

51 

191 

$312,350 

23 

64 

60,050 

52 

202 

335,600 

24 

201 

188,100 

53 

189 

313,300 

25 

168 

156,300 

54 

131 

219,300 

26 

246 

258,150 

55 

108 

176,700 

27 

406 

478,900 

56 

43 

71,300 

28 

507 

643,000 

57 

43 

77,850 

29 

587 

759,150 

58 

44 

78,200 

30 

502 

649,740 

59 

24 

40,150 

31 

533 

698,450 

60 

20 

35,650 

32 

486 

665,800 

61 

16 

25,750 

33 

504 

708,630 

62 

16 

30,100 

34 

479 

676,950 

63 

10 

18,500 

35 

479 

675,750 

64 

7 

13,250 

36 

420 

600,800 

65 

5 

9,100 

37 

358 

519,600 

66 

7 

10,700 

38 

352 

521,050 

67 

3 

4,200 

39 

352 

548,750 

68 

7 

9,800 

40 

302 

467,950 

69 

4 

8,300 

41 

301 

475,170 

70 

1 

1,400 

42 

241 

394,830 

71 

1 

1,400 

43 

286 

460,300 

72 

44 

261 

430,800 

73 

1 

1,400 

45 

298 

489,040 

74 

2 

2,800 

46 

215 

347,250 

75 

47 

175 

282,300 

76 

48 

188 

315,800 

77 

49 

162 

271,300 

78 

1 

1,400 

50 

197 

322,100 

Total 

10,347 

$14,865,410 

184 


Table  22- 


-Showing  By  Length  of  Service  the  Number  and  Salary  of  All  Employees 
of  the  New  York  City  Police  Force. 


Year 

of 

Service 

Number 

Salaries 

Appointment 

1913 

0      to       H  year 

262 

$234,850 

1912 

3^  to     \]/2  years 

728 

694,250 

1911 

\x/2  to    23^  years 

420 

454,450 

1910 

2V2  to    %Y2  years 

327 

414,570 

1909 

314  to    4)4  years 

652 

897,100 

1908 

A]4  to    53^  years 

700 

990,500 

1907 

f>y2  to    6^2  years 

871 

1,230,200 

1906 

63^  to    73^  years 

687 

967,750 

1905 

73^  to    &%,  years 

494 

695,100 

1904 

%y2  to    93^  years 

538 

765,600 

1903 

9M  to  10  Y2  years 

464 

668,800 

1902 

10K  to  113^  years 

449 

652,150 

1901 

11H  to  Yiy2  years 

90 

134,050 

1900 

\iy2  to  13 y2  years 

145 

209,850 

1899 

\2>y2  to  143^  years 

4 

4,000 

1898 

143^  to  153^  years 

145 

223,650 

1897 

\hy2  to  163^  years 

750 

1,228,160 

1896 

163^  to  173^  years 

541 

906,500 

1895 

\iy2  to  183^  years 

154 

240,780 

1894 

183^  to  193^  years 

333 

538,050 

1893 

193^  to  20^  years 

269 

421,100 

1892 

203^  to  213^  years 

164 

264,650 

1891 

213^  to  223^  years 

195 

315,950 

1890 

223^  to  23^  years 

134 

222,900 

1889 

23^  to  24^  years 

187 

314,700 

1888  and  prior 

24^2  to  25  or  more 

Total 

644 

1,175,750 

10,347 

$14,865,410 

Table  23 — Showing  By  Age  the  Number  and  Pension  of  All  Pensioners  of  the 

New  York  City  Police  Force,  Who  Were  Retired  on 

Regular  or  Service  Pensions. 


Age 

Number 

Pension 

Age 

Number 

Pension 

52 

1 

$700 

72 

19 

$17,475 

53 

1 

1,125 

73 

30 

25,350 

54 

1 

1,000 

74 

17 

12,450 

55 

13 

10,800 

75 

9 

7,675 

56 

26 

19,500 

76 

14 

11,275 

57 

32 

27,375 

77 

11 

7,475 

58 

24 

19,850 

78 

10 

8,575 

59 

18 

15,500 

79 

5 

3,875 

60 

25 

20,475 

80 

5 

3,000 

61 

25 

19,650 

81 

6 

5,400 

62 

28 

22,675 

82 

3 

1,800 

63 

48 

41,225 

83 

8 

6,000 

64 

42 

34,375 

84 

1 

550 

65 

63 

50,175 

85 

1 

1,375 

66 

70 

54,625 

86 

1 

600 

67 

67 

52,750 

87 

3 

2,200 

68 

57 

41,625 

88 

69 

54 

41,775 

89 

70 
71 

60 
41 

46,950 
29,600 

90 

i 

600 

Total.  . . 

840 

$667,425 

185 


Table  24 — Showing  By  Age  the  Number  and  Pension  op  All  Pensioners  of  the 
New  York  Police  Force,  Who  Were  Retired  Because  op  Disability. 


Age 

Number 

Pension                 A 

?e            Number 

Pension 

27 

3 

$765                    6 

2                  21 

$16,181 

28 

4 

1,375                    6 

3                  24 

15,802 

29 

6 

4                  24 

17,900 

30 

3 

1,500                   6 

5                   18 

12,725 

31 

2 

1,050                   6 

6                  23 

18,125 

32 

3 

1,750                   6 

7                   14 

11,190 

33 

3 

1,400                   6 

8                   17 

11,750 

34 

2 

700                   6 

9                    9 

6,379 

35 

7 

3,305                    7 

0                    8 

6,000 

36 

9 

4,085                    7 

1                     9 

5,351 

37 

6 

2,129                    7 

2                    6 

4,100 

38 

20 

10,309                    7 

3                    5 

3,900 

39 

16 

7,695                    7 

4                   10 

7,300 

40 

20 

9,872                    7 

5                    6 

4,555 

41 

20 

10,911                    7 

6                    4 

2,800 

42 

25 

13,135                    7 

7                    4 

1,950 

43 

30 

18,073                 •  7 

8                     1 

500 

44 

35 

21,712                    7 

9 

45 

44 

29,224                   8 

0                    2 

400 

46 

74 

49,137                    8 

1                    2 

1,300 

47 

54 

38,654                   8 

2 



48 

52 

36,643                    8 

3                    2 

900 

49 

74 

53,815                   8 

4 

50 

91 

69,231                    8 

5 

51 

129 

92,305                    8 

6 

52 

119 

85,980                   8 

7                    1 

1 

53 

111 

83,702 

54 

102 

75,965 

55 

99 

70,799 

56 

69 

54,216 

57 

59 

43,133 

58 

50 

38,590 

59 

28 

21,525 

60 

31 

22,075 

61 

37 

27,000 

To1 

,al...       1,641 

$1,150,869 

186 


Table  25 — Showing  By  Age  the  Number  and  Pension  op  All  Widows  on  the  Roll 
op  the  New  York  City  Police  Pension  Fund. 


Age 

Number 

Pension 

Age 

Number 

Pension 

28 

1 

$300 

59 

35 

$9,660 

29 

4 

1,500 

60 

44 

12,620 

30 

4 

1,020 

61 

25 

7,440 

31 

6 

1,800 

62 

37 

10,800 

32 

6 

1,680 

63 

29 

7,690 

33 

10 

3,120 

64 

33 

8,970 

34 

16 

4,800 

65 

27 

7,580 

35 

10 

3,000 

66 

37 

11,120 

36 

17 

4,950 

67 

27 

7,500 

37 

17 

5,100 

68 

28 

7,310 

38 

28 

8,790 

69 

30 

8,530 

39 

25 

6,970 

70 

18 

4,880 

40 

30 

9,280 

71 

22 

5,700 

41 

23 

6,510 

72 

19 

4,740 

42 

35 

10,700 

73 

18 

5,194 

43 

33 

9,480 

74 

14 

4,050 

44 

39 

11,630 

75 

7 

1,920 

45 

44 

12,020 

76 

8 

2,060 

46 

52 

14,580 

77 

5 

1,800 

47 

35 

9,490 

78 

10 

3,030 

48 

28 

8,160 

79 

7 

1,980 

49 

42 

12,050 

80 

3 

660 

50 

38 

11,060 

81 

6 

1,680 

51 

41 

11,660 

82 

7 

1,820 

52 

46 

13,390 

83 

53 

39 

10,060 

84 

5 

1,320 

54 

32 

8,544 

85 

1 

120 

55 

38 

10,600 

86 

56 

26 

7,150 

87 

i 

300 

57 

38 

10,560 

88 

58 

34 

9,220 

89 

2 

550 

Total... 

1,342 

$380,198 

Table  26 — Showing  By  Age  the  Number  and  Pension  op  All  Children  on  the  Roll 
op  the  New  York  City  Police  Pension  Fund. 


Age 

Number 

Pension 

Age 

Number 

Pension 

4 
5 
6 
7 
8 
9 
10 
11 

2 
1 
4 
2 
5 
6 
8 
7 

$240 
120 
570 
240 
456 
590 
870 
920 

12 
13 
14 
15 
16 
17 
18 

Total.  .. 

6 
10 
10 
12 
13 
19 

2 

$595 
862 

1,065 
990 

1,475 

1,906 
180 

107 

$11,079 

— i 

187 


Table  27 — Showing  By  Age  the  Number  of  Persons  on  the  New  York  City  Police 

Force  and  Pension  Fund. 


Number  of  Persons  on  the 

Number  of  Persons  on  the 

A*e       Ac 

Dis- 

Regu- 

Wid- 

Chil- 

A§e      Ac 

Dis- 

Regu- 

Wid-    ( 

;hil- 

!t- 

ability 

lar 

ow's 

dren's 

t- 

ability 

lar 

ow's    d 

ren's 

i\ 

re 

pen- 

pen- 

pen- 

pen- 

i\ 

e 

pen- 

pen- 

pen-     1 

)en- 

foi 

ce 

sion 

sion 

sion 

sion 

for 

ce 

sion 

sion 

sion       1 

3ion 

roll 

roll 

roll 

roll 

roll 

roll 

roll 

roll 

4 

2 

49         16 

2 

74 

42 

5 

1 

50        19 

7 

91 

38 

6 

4 

51         19 

1 

129 

.... 

41 

7 

2 

52        20 

2 

119 

46 

8 

5 

53         18 

9 

111 

1 

39 

9 

6 

54        13 

1 

102 

1 

32 

10 

8 

55        10 

8 

99 

13 

38 

11 

7 

56          4 

3 

69 

26 

26 

12 

6 

57          4 

3 

59 

32 

38 

13 

10 

58          4 

4 

50 

24 

34 

14 

10 

59          2 

4 

28 

18 

35 

15 

12 

60          2 

0 

31 

25 

44 

16 

13 

61           1 

6 

37 

25 

25 

17 

19 

62          1 

6 

21 

28 

37 

18 

2 

63          1 

0 

24 

48 

29 

19 

64 

7 

24 

42 

33 

20 

65 

5 

18 

63 

27 

21 

66 

7 

23 

70 

37 

22 

i' 

67 

3 

14 

67 

27 

23          6 

4 

68 

7 

17 

57 

28 

24         20 

1 

69 

4 

9 

54 

30 

25         16 

8 

70 

1 

8 

60 

18 

26        24 

6 

71 

1 

9 

41 

22 

27        40 

6 

"3 

72 

6 

19 

19 

28        50 

7 

4 

"l 

73 

i' 

5 

30 

18 

29        58 

7 

4 

74 

2 

10 

17 

14 

30        50 

2 

"3* 

4 

75 

6 

9 

7 

31        53 

3 

2 

6 

76 

4 

14 

8 

32        48 

6 

3 

6 

77 

4 

11 

5 

33        50 

4 

3 

10 

78 

i' 

1 

10 

10 

34        47 

9 

2 

16 

79 

5 

7 

35        47 

9 

7 

10 

80 

"2 

5 

3 

36        42 

0 

9 

17 

81 

2 

6 

6 

37        35 

8 

6 

17 

82 

3 

7 

38        35 

2 

20 

28 

83 

"2 

8 

39        35 

2 

16 

25 

84 

1 

"'5' 

40        30 

2 

20 

30 

85 

1 

1 

41        30 

1 

20 

23 

86 

...... 

1 

.... 

42        24 

1 

25 

35 

87 

3 

43        28 

6 

30 

33 

88 

44        26 

1 

35 

39 

89 

"2 

45        29 

8 

44 

44 

90 

Vi" 

46        21 

5 

74 

52 

47  17 

48  IS 

K 

KA 

9K 

8 

G 

5 

2 

0 

2 

8 

Total  10,: 

547 

1,641 

840 

1,342     ] 

L07 

188 


PENSION   ALLOWANCES. 

Since  the  amount  of  the  pension  that  is  allowed  in  any  case  is  purely 
discretionary,  it  was  necessary  to  calculate  the  average  pension  allowances 
that  had  been  made  in  the  past.  The  average  allowances  that  have  been 
made  in  pensions  during  the  period  of  the  experience  were  as  follows: 

Kegular  or  service  pensioners: 

Pension  of  50  per  cent,  of  final  salary  per  year. 

Invalid  or  disability  pensioners: 

Pension  of  47  per  cent,  of  final  salary  per  year. 

Widow  pensioners: 

Pension  of  $283  per  year. 

Children  pensioners: 

Pension  of  $152  per  year  to  each  family  of  children  to  run  until 
the  youngest  child  reaches  18  years  of  age. 

It  is  very  noticeable  that  the  regular  pension  allowance  is  50  per  cent, 
of  final  salary,  which  is  the  minimum  amount  allowed  by  law,  while  in 
the  case  of  disability  pensions  the  allowance  has  been  47  per  cent,  of  final 
salary,  with  the  legal  limits  of  from  25  to  50  per  cent.  This  means  that 
there  is  only  3  per  cent,  difference  in  the  amount  of  allowance  granted 
in  case  of  disability  from  that  granted  for  length  of  service. 


YEAKLY  COST  TO  CITY  OF  PENSION  PAYMENTS  TO  PRESENT 
ACTIVE  AND  PENSION  FORCES. 

In  showing  the  annual  cost  of  pensions  to  the  present  active  and  pen- 
sioned forces  the  figures  are  given  for  the  cost  of  each  set  of  similar  bene- 
fits. The  receipts  of  the  fund  by  way  of  employees '  contributions  are  given 
also  in  order  that  they  may  be  compared  with  the  actual  cost  of  the  pen- 
sions and  the  net  amount  of  appropriations  required  of  the  City.  The 
payments  for  service  pensions  include  all  payments  to  be  made  to  employees 
under  the  benefits  for  age  or  length  of  service  as  given  under  the  list  of 
benefits  on  page  149.  The  payments  for  disability  pensions  include  all  pay- 
ments to  be  made  to  employees  under  the  benefits  which  arise  because  of 
disability  or  invalidity.  The  payments  for  widows'  pensions  and  those  for 
children's  pensions  include  the  payments  to  widows  arising  from  all  of  the 
benefits,  and  those  to  children  arising  from  all  of  the  benefits,  respectively. 
In  showing  these  annual  payments  the  cost  for  pensions  entered  upon  has 
been  separated  from  those  which  will  be  entered  upon  later  by  members 
now  in  the  active  force.  The  contributions  which  will  be  made  by  em- 
ployees now  in  the  active  force,  before  they  go  on  pension,  are  given.  By 
deducting  the  amount  of  employees'  contributions  from  the  total  cost  of 
pensions,  we  have  the  amount  of  money  which  it  is  necessary  for  the  City 
to  contribute  each  year  to  the  present  active  and  pension  forces  alone. 
In  other  words,  if  the  City  should  repeal  the  entire  pension  law  as  regards 


189 

all  new  entrants  into  the  police  force,  but  allowed  the  provisions  to  persons 
now  on  the  rolls,  it  would  still  be  necessary  to  pay  the  amounts  shown  in 
the  following  table  before  the  liability  to  the  persons  who  have  already 
come  under  the  benefits  of  the  law  is  wiped  out. 

The  following  table  shows  that  the  present  active  force  with  their 
wives  and  children  will  draw  in  round  numbers  about  one  hundred  and 
twenty-one  million  dollars  ($121,000,000)  in  pensions  after  leaving  the 
active  service.  The  figures  on  annual  cost  show  that  the  annual  pension 
payments  to  members  now  in  the  active  force  will  increase  every  year  for 
twenty-five  years,  or  until  the  year  1937,  when  they  will  reach  a  maximum 
load  on  the  fund  of  about  three  million  six  hundred  thousand  dollars 
($3,600,000)  a  year.  After  the  year  1937  the  pensioners  coming  on  the 
fund  from  the  active  force  will  not  equal  the  number  of  pensioners  going 
off  the  fund  by  death  or  otherwise,  and  the  cost  will  gradually  decrease. 

The  pensioners  who  are  now  on  the  pension  roll  will  draw  in  round 
numbers  about  twenty-eight  million  dollars  ($28,000,000)  before  their  pen- 
sions are  terminated.  The  annual  payments  to  the  present  pensioners  will 
gradually  decrease  because  of  deaths  and  revocations  of  pensions,  as  shown 
in  the  table. 

The  total  annual  payment  of  all  pensions  to  the  present  active  service 
and  pensioners  will  increase  each  year  for  the  next  twenty-two  years,  when 
it  will  reach  its  maximum  load  on  the  fund  of  about  four  million  dollars 
($4,000,000)  in  the  year  1934.  The  cost  will  gradually  decrease  after 
this  period  until  all  of  the  pensioners  on  the  present  active  service  or  pen- 
sion rolls  are  either  dead  or  have  had  their  pensions  revoked. 

The  total  amount  payable  in  pensions  to  these  persons  who  have 
already  come  within  the  benefits  of  the  law,  or,  in  other  words,  the  present 
active  and  pension  services,  is,  in  round  numbers,  about  one  hundred  and 
forty-nine  million  dollars  ($149,000,000). 

The  amount  of  the  employees'  contributions  of  2  per  cent,  of  their 
salaries  to  the  pension  fund  is  shown  in  the  table.  As  the  present  active 
force  will  gradually  decrease  by  way  of  resignations,  deaths,  retirements, 
etc.,  the  amount  of  contributions  gradually  decreases,  but  a  total  of  about 
four  million  dollars  ($4,000,000)  will  be  received  from  this  source.  De- 
ducting the  annual  amount  of  the  employees'  contributions  from  the  annual 
total  cost  of  pensions,  we  get  the  annual  net  cost  of  pensions  to  the  City 
for  the  present  active  and  pension  forces  alone.  This  amount  gradually 
increases  for  the  first  twenty-two  years,  when  it  reaches  its  maximum  of 
about  four  million  dollars  ($4,000,000)  per  annum  in  the  year  1934.  From 
1934  on  the  annual  amount  decreases  until  all  of  the  pensioners  are  off 
the  pension  roll. 

The  total  net  cost  to  the  City  of  pensions  to  the  present  active  and 
pension  rolls  alone  will  be,  in  round  numbers,  about  one  hundred  and 
forty-five  million  dollars  ($145,000,000). 


190 


Table  28 — Showing  the  Aggregate  and  Detailed  Annual  Cost  of  Pensions  to  the 
Fund,  Together  with  the  Amount  op  the  Employees'  Con 


♦Date 

Pensions  Accruing  to  Members  Now  in  Active  Force 

Year  After 
Valuation 

Service 

Disability 

Widows' 

Children's 

Total  Pen- 
sions Not 

Pension 

Pension 

Pension 

Pension 

Entered 
Upon 

1 

1913 

$20,728 

$75,772 

$16,205 

$7,249 

$119,954 

2 

1914 

66,026 

217,083 

48,911 

21,918 

353,938 

3 

1915 

116,310 

353,272 

80,915 

36,890 

587,387 

4 

1916 

169,797 

482,826 

112,693 

52,162 

817,478 

5 

1917 

227,437 

605,247 

144,474 

67,704 

1,044,862 

6 

1918 

287,291 

724,633 

176,415 

83,457 

1,271,796 

7 

1919 

343,811 

840,548 

207,371 

98,411 

1,490,141 

8 

1920 

393,786 

951,012 

238,640 

113,167 

1,696,605 

9 

1921 

439,607 

1,057,416 

269,617 

128,467 

1,895,107 

10 

1922 

477,409 

1,163,228 

300,303 

141,822 

2,082,762 

11 

1923 

514,446 

1,264,697 

330,612 

155,385 

2,265,140 

»     12 

1924 

562,643 

1,362,595 

360,494 

169,903 

2,455,635 

13 

1925 

580,141 

1,459,691 

389,818 

181,953 

2,611,603 

14 

1926 

606,289 

1,550,974 

418,342 

191,256 

2,766,861 

15 

1927 

629,187 

1,639,139 

445,983 

198,406 

2,912,715 

16 

1928 

650,250 

1,721,384 

472,752 

204,483 

3,048,869 

17 

1929 

669,426 

1,796,505 

498,032 

205,139 

3,169,102 

18 

1930 

689,394 

1,864,160 

522,078 

205,768 

3,281,400 

19 

1931 

706,445 

1,921,411 

545,231 

206,396 

3,379,483 

20 

1932 

722,239 

1,966,685 

566,181 

202,865 

3,457,970 

21 

1933 

742,347 

1,999,910 

585,725 

202,808 

3,530,790 

22 

1934 

761,208 

2,019,031 

604,298 

201,374 

3,585,911 

23 

1935 

780,782 

2,023,320 

620,353 

197,539 

3,621,994 

24 

1936 

800,198 

2,014,063 

634,758 

195,420 

3,644,439 

25 

1937 

819,378 

1,990,669 

647,829 

192,254 

3,650,130 

26 

1938 

838,032 

1,953,174 

658,343 

185,701 

3,635,250 

27 

1939 

857,742 

1,904,346 

666,980 

182,710 

3,611,778 

28 

1940 

877,538 

1,844,467 

673,993 

177,959 

3,573,957 

29 

1941 

892,256 

1,773,544 

678,628 

170,175 

3,514,603 

30 

1942 

897,285 

1,695,479 

681,130 

165,093 

3,438,987 

31 

1943 

891,102 

1,611,611 

681,283 

158,420 

3,342,416 

32 

1944 

877,141 

1,522,799 

679,865 

149,164 

3,228,969 

33 

1945 

855,416 

1,431,615 

675,957 

142,427 

3,105,415 

34 

1946 

825,012 

1,339,228 

669,456 

135,446 

2,969,142 

35 

1947 

787,741 

1,246,108 

661,762 

125,146 

2,820,757 

36 

1948 

745,903 

1,154,045 

651,568 

115,788 

2,667,304 

37 

1949 

700,898 

1,063,827 

639,212 

106,990 

2,510,927 

38 

1950 

653,984 

975,424 

625,444 

95,290 

2,350,142 

39 

1951 

606,106 

889,996 

609,336 

86,532 

2,191,970 

40 

1952 

558,252 

807,840 

591,360 

73,117 

2,030,569 

41 

1953 

511,010 

728,771 

572,229 

60,657 

1,872,667 

42 

1954 

465,006 

653,991 

551,111 

53,846 

1,723,954 

43 

1955 

420,722 

583,042 

528,494 

42,317 

1,574,575 

44 

1956 

378,482 

516,066 

505,147 

34,965 

1,434,660 

45 

1957 

338,487 

453,971 

480,268 

28,667 

1,301,393 

46 

1958 

300,820 

395,771 

454,306 

20,398 

1,171,295 

47 

1959 

265,578 

342,378 

428,233 

17,114 

1,053,303 

48 

1960 

232,802 

293,595 

401,359 

13,183 

940,939 

49 

1961 

202,477 

248,949 

373,506 

9,784 

834,716 

50 

1962 

174,705 

209,203 

346,502 

7,518 

737,928 

51 

1963 

149,351 

173,798 

319,349 

5,432 

647,930 
i 

191 


Present  Active  Force  and  Pension  Members  of  the  New  York  City  Police  Pension 
tribtjtion  prom  the  present  active  force. 


Pensions  Accruing  to  Persons  Now  on  Pension  Roll 

Total 

Total,  All 
Pensions 

Amount 
of  Em- 

Pension 

Cost  Less 

Chil- 
dren's 
Pension 

Total 

to  Actives 

ployees' 

Employees^ 

Service 

Disability 

Widows' 

Pensions 

and 

Contribu- 

Cont'b'n. 

Pension 

Pension 

Pension 

Entered 
Upon 

Pensioners 

tions 

Net  Cost 
to  City 

$640,892 

$1,122,606 

$370,616 

$10,974 

$2,145,088 

$2,265,042 

$289,616 

$1,975,426 

592,876 

1,072,162 

353,179 

8,942 

2,027,159 

2,381,097 

282,787 

2,098,310 

546,642 

1,023,597 

336,243 

7,450 

1,913,932 

2,501,319 

269,661 

2,231,658 

502,154 

976,656 

319,806 

6,448 

1,805,064 

2,622,542 

264,274 

2,358,268 

459,623 

931,021 

303,885 

5,377 

1,699,906 

2,744,768 

253,838 

2,490,930 

419,049 

877,472 

288,431 

4,512 

1,589,464 

2,861,260 

240,943 

2,620,317 

380,380 

842,869 

273,462 

3,914 

1,500,625 

2,990,766 

233,700 

2,757,066 

343,801 

800,105 

258,998 

3,003 

1,405,907 

3,102,512 

222,820 

2,879,692 

309,292 

758,023 

244,812 

2,147 

1,314,274 

3,209,381 

209,320 

3,000,061 

276,914 

716,639 

231,168 

1,568 

1,226,289 

3,309,051 

201,488 

3,107,563 

246,600 

675,881 

217,922 

1,123 

1,141,526 

3,406,666 

190,129 

3,216,537 

218,407 

635,742 

205,167 

889 

1,060,205 

3,515,840 

176,304 

3,339,536 

192,279 

596,301 

192,832 

341 

981,753 

3,593,356 

168,212 

3,425,144 

168,297 

557,571 

180,949 

226 

907,043 

3,673,904 

155,619 

3,518,285 

146,319 

519,611 

169,470 

835,400 

3,748,115 

144,774 

3,603,341 

126,345 

482,490 

158,459 

767,294 

3,816,163 

133,671 

3,682,492 

108,333 

446,313 

147,834 

702,480 

3,871,582 

122,947 

3,748,635 

92,170 

411,124 

137,669 

640,963 

3,922,363 

112,370 

3,809,993 

77,796 

377,006 

127,936 

582,738 

3,962,221 

101,944 

3,860,277 

65,113 

344,098 

118,620 

527,831 

3,985,801 

91,881 

3,893,920 

53,997 

312,462 

109,753 

476,212 

4,007,002 

82,324 

3,924,678 

44,382 

282,193 

101,278 

427,853 

4,013,764 

73,109 

3,940,655 

36,107 

253,346 

93,234 

382,687 

4,004,681 

64,533 

3,940,148 

29,070 

226,062 

85,590 

340,722 

3,985,161 

56,314 

3,928,847 

23,154 

200,362 

78,329 

301,845 

3,951,975 

48,817 

3,903,158 

18,246 

176,303 

71,481 

266,030 

3,901,280 

41,491 

3,859,789 

14,203 

154,034 

65,029 

233,266 

3,845,044 

35,133 

3,809,911 

10,936 

133,438 

58,954 

203,328 

3,777,285 

29,357 

3,747,928 

8,303 

114,646 

53,279 

176,228 

3,690,831 

24,374 

3,666,457 

6,228 

97,616 

47,961 

151,805 

3,590,792 

19,888 

3,570,904 

4,592 

82,309 

42,972 

129.873 

3,472,289 

15,850 

3,456,439 

3,340 

68,723 

38,351 

110,414 

3,339,383 

12,824 

3,326,559 

2,375 

56,850 

34,072 

93,297 

3,198,712 

10,183 

3,188,529 

1,651 

46,491 

30,135 

78,277 

3,047,419 

7,973 

3,039,446 

1,129 

37,640 

26,510 

65,279 

2,886,036 

6,225 

2,879,811 

752 

30,145 

23,214 

54,111 

2.721,415 

4,839 

2,716,576 

484 

23,875 

20,199 

44,558 

2,555,485 

3,744 

2,551,741 

302 

18,728 

17,478 

36,508 

2,386,650 

2,886 

2,383,764 

176 

14,536 

15,018 

29,730 

2,221,700 

2,216 

2,219,484 

99 

11,207 

12,830 

24,136 

2,054,705 

1,694 

2,053,011 

53 

8,556 

10,883 

19,492 

1,892,159 

1,289 

1,890,870 

28 

6,441 

9,168 

15,637 

1,739,591 

972 

1,738,619 

13 

4,831 

7,656 

12,500 

1,587,075 

723 

1,586,352 

5 

3,587 

6,345 

9,937 

1,444,597 

525 

1,444,072 

2 

2,604 

5,215 

7,821 

1,309,214 

369 

1,308,845 

1 

1,896 

4,247 

6,144 

1,177,439 

249 

1,177,190 

1,390 

3,456 

4,846 

1,058,149 

160 

1,057,989 

958 

2,734 

3,692 

944,631 

96 

944,535 

693 

2,160 

2,853 

837,569 

54 

837,515 

492 

1,688 

2,180 

740,108 

28 

740,080 

327 

1,302 

1,629 

649,559 

13 

649,546 

192 


Table  28 — Showing  the  Aggregate  and  Detailed  Annual  Cost  op  Pensions  to  the 
Fund,  Together  with  the  Amount  of  the  Employees'  Con 


•Date 

Pensions  Accruing  to  Members  Now  in  Active  Force 

Year  After 

Total  Pen- 

Service 

Disability 

Widows' 

Children's 

sions  Not 

Pension 

Pension 

Pension 

Pension 

Entered 
Upon 

52 

1964 

$126,774 

$141,894 

$291,433 

$4,291 

$564,392 

53 

1965 

106,498 

114,894 

265,358 

3,130 

489,880 

54 

1966 

88,589 

91,477 

239,693 

2,475 

422,234 

55 

1967 

72,937 

71,062 

213,900 

1,722 

359,621 

56 

1968 

59,386 

54,833 

190,462 

1,360 

306,041 

57 

1969 

47,773 

41,346 

167,989 

1,094 

258,202 

58 

1970 

37,925 

29,981 

145,937 

851 

214,694 

59 

1971 

29,687 

21,146 

126,538 

610 

177,981 

60 

1972 

22,877 

15,152 

108,522 

465 

147,016 

61 

1973 

17,304 

9,929 

91,757 

360 

119,350 

62 

1974 

12,842 

6,576 

77,047 

239 

96,704 

63 

1975 

9,336 

4,207 

63,853 

178 

77,574 

64 

1976 

6,646 

2,378 

52,287 

.  109 

61,420 

65 

1977 

4,604 

1,473 

42,238 

76 

48,391 

66 

1978 

3,103 

775 

33,589 

52 

37,519 

67 

1979 

2,008 

399 

26,299 

32 

28,738 

68 

1980 

1,271 

204 

20,237 

17 

21,729 

69 

1981 

777 

89 

15,259 

9 

16,134 

70 

1982 

450 

40 

11,269 

6 

11,765 

71 

1983 

253 

17 

8,133 

2 

8,405 

72 

1984 

129 

6 

5,702 

2 

5,839 

73 

1985 

61 

1 

3,883 

3,945 

74 

1986 

30 

2,561 

2.591 

75 

1987 

13 

1,607 

1,620 

76 

1988 
1989 
1990 
1991 
1992 
1993 
1994 
1995 

4 

1 

979 

566 

297 

156 

74 

28 

14 

6 

983 

567 

297 

156 

74 

28 

14 

6 

77 

78 

79 

80 

81 

82 

83 

Total  Annual  Payments. 

$28,731,701 

$59,486,188 

$26,250,524 

$6,043,115 

$120,511,528 

*  Valuation    Year — February  1  to  January  31. 


If  we  consider  the  amount  of  the  pension  payments  in  relation  to  the 
salary  payments  we  have  the  results  shown  in  Table  29,  page  194,  so  far 
as  the  present  active  force  and  pension  rolls  alone  are  concerned.  This 
method  of  comparison  is  misleading  and  is  improper  in  the  case  of  a  fund 
before  it  has  reached  its  normal  load,  which  is  seldom  within  less  than 
fifty  to  one  hundred  years  after  its  establishment.  The  normal  load  is 
generally  reached  when  the  increment  to  the  service  equals  the  decrement 


193 


Present  Active  Force  and  Pension  Members  op  the  New  York  City  Police  Pension 
tribtttion  from  the  Present  Active  Force. — Continued. 


Pensions  Accruing  to  Persons  Now  on  Pension  Roll 

Total,  All 
Pensions 
to  Actives 

and 
Pensioners 

Amount 
of  Em- 
ployees' 
Contribu- 
tions 

Total 
Pension 

Service 
Pension 

Disability 
Pension. 

Widows' 
Pension 

Chil- 
dren's 
Pension 

Total 
Pensions 
Entered 

Upon 

Cost  Less 

Employees' 

Cont'b'n. 

Net  Cost 
to  City 

$231 

162 

104 

73 

50 

31 

21 

14 

8 

5 

3 

1 

1 

$992 

745 

551 

400 

286 

200 

137 

91 

59 

37 

23 

13 

7 

4 

2 

1 

$1,223 

907 

655 

473 

336 

231 

158 

105 

67 

42 

26 

14 

8 

4 

2 

1 

$565,615 

490,787 

422,889 

360,094 

306,377 

258,433 

214,852 

178,086 

147,083 

119,392 

96,730 

77,588 

61,428 

48,395 

37,521 

28,739 

21,729 

16,134 

11,765 

8,405 

5,839 

3,945 

2,591 

1,620 

983 

567 

297 

156 

74 

28 

14 

6 

$5 
1 

$565,610 

490,786 

422,889 

360,094 

306,377 

258,433 

214,852 

178,086 

147,083 

119,392 

96.730 

77,588 

61,428 

48,395 

37,521 

28,739 

21,729 

16,134 

11,765 

8,405 

5,839 

3,945 

2,591 

1,620 

983 

567 

297 

156 

74 

28 

14 

6 

$6,172,910 

$16,540,732 

$5,721,527 

$56,914 

$28,492,083 

$149,003,611 

$4,414,556 

$144,589,055 

therefrom.  However,  since  the  percentages  given  are  not  to  be  used  as 
determining  the  amount  of  the  employees '  or  City 's  contribution,  they  are 
shown  in  the  following  table,  which  gives  a  comparison  of  what  the  City 
will  have  to  pay  under  present  conditions,  so  far  as  the  present  forces  alone 
are  concerned.  It  will  be  noticed  that  after  the  twenty-first  year  the  pen- 
sion payments  will  exceed  the  salary  payments,  so  that  no  percentages  are 
given  beyond  that  date. 


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YEARLY  COST  OF  CONTINUING  LIABILITY 

So  far  in  the  report  the  liability  to  members  of  the  present  active 
and  pension  rolls  only  has  been  considered,  and  no  account  has  been  taken 
of  payments  of  pension  which  will  be  made  to  persons  who  enter  the  force 
subsequent  to  the  valuation.  As  the  2  per  cent,  deduction  from  salaries 
does  not  cover  the  cost  of  the  pensions,  it  is  necessary  to  allow  for  these 
persons  in  the  calculations  in  order  to  obtain  the  entire  cost  of  the  pension 
system.  During  the  six  years  covered  by  the  valuation  the  average  en- 
trance age  of  persons  coming  into  the  police  force  was  26  years.  In  mak- 
ing the  calculations  the  entrance  age  of  25  years  was  used,  as  the  assumption 
of  this  age  gives  a  minimum  cost  to  the  City  and  makes  a  very  conservative 
estimate.  The  maintenance  of  a  service  of  the  size  of  the  present  one 
would  require  636  entrants  each  year,  provided  the  present  salary  roll 
continued  the  same.  This  number  of  entrants  was  used,  therefore,  in  mak- 
ing the  calculations  covering  the  continuing  liability.  The  estimate  of 
cost  as  to  future  entrants  is  the  minimum,  and  does  not  allow  for  any 
increase  in  the  size  of  the  force.  As  the  size  of  the  force  and  payroll  un- 
doubtedly will  increase,  the  actual  cost  probably  will  run  far  in  excess  of 
the  estimate.  The  percentage  relationship  between  salaries  and  pensions 
remains  the  same  for  any  uniform  number  of  entrants,  so  that  these  per- 
centages may  be  said  neither  to  understate  nor  overstate  the  fact.  The  fol- 
lowing table  shows  the  annual  cost  per  year  for  each  class  of  pension 
benefits  and  the  total  salary  payments  to  be  made  to  636  persons  entering 
each  year.  It  will  be  noted  that  the  total  amount  of  money  or  the  per- 
centage of  salary  contributed  by  the  City  toward  pensions  gradually  in- 
creases each  year  until  the  eighty-fourth  year,  or  until  1996,  when  the 
fund  will  reach  its  normal  load.  At  this  time  the  pensions  will  amount 
to  33.44  per  cent,  of  salaries  and  the  City  will  have  to  contribute  an  annual 
amount  equal  to  31.44  per  cent,  of  the  salary  roll.  The  table  shows  that 
the  2  per  cent,  salary  deductions  from  the  employees'  salaries  will  carry 
all  of  the  pension  claims  for  some  twenty-five  years  or  more;  in  other 
words,  the  City  will  not  be  called  upon  to  contribute  toward  the  pension 
fund  so  far  as  new  entrants  are  concerned  for  over  twenty-five  years,  since 
the  unexpended  balance  of  the  employees'  contributions  will  carry  the 
expense  beyond  the  time  where  the  pensions  amount  to  over  2  per  cent, 
of  the  total  salaries. 

This  is  a  very  striking  example  of  the  trap  into  which  so  many  pen- 
sion schemes  enter  through  lack  of  actuarial  investigation  or  advice  in  the 
establishment  and  maintenance  of  a  fund.  Under  favorable  conditions 
many  funds  can  meet  their  obligations  for  a  period  of  some  fifty  years 
after  their  establishment  on  an  unscientific  basis,  and  because  of  this  fact 
the  administrative  officials  beguile  themselves  into  totally  disregarding  the 
necessity  of  actuarial  assistance. 


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202 


TOTAL   YEARLY   COST   OF   PENSIONS. 

Since  the  present  active  and  pension  rolls  and  the  new  entrants  to 
each,  which  are  of  course  covered  by  the  entrants  to  the  active  service, 
embrace  the  entire  pension  system,  it  is  but  necessary  to  combine  these  costs 
to  get  the  total  cost  of  pensions.  The  following  table  shows  this  cost  for 
each  year  until  the  service  reaches  a  normal  load,  which  it  will  do  within 
eighty-five  years  if  present  conditions  continue.  After  that  time  the  pen- 
sions will  remain  in  a  fixed  ratio  to  the  salaries.  This  ratio  is  shown  as 
33.44  per  cent,  of  the  total  payroll. 


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206 

AVERAGE  AMOUNT  OF  SALARY  AND 

In  determining  the  total  cost  of  pensions  for  the  total  number  of  em- 
pension  received  by  the  average  entrant  into  the  police  force.  To  do  this  the 
persons  entering  at  age  25  on  an  entrance  salary  of  $800  per  annum  was 
class  of  benefits  and  the  total  salary  payments  received  by  the  1,000  em- 
service  and  their  pensions  are  terminated. 


Table  32 — Showing  the  Annual  Amounts  of 


Pension  and  Salary  Payments  to 
Police  Force  at  Age  25  on  an 


Year 

of 
Pay- 
ment 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 


Service 
Pen- 
sion 


16,946 
39,543 
51,330 
59,885 
66,068 
70,401 
73,270 
74,710 
74,858 
73,827 
71,883 
69,076 
65,760 


Dis- 
ability 
Pension 


$241 

623 

1.005 

li336 

1,429 

2,475 

3,147 

3,923 

4,926 

6,093 

7,502 

9,212 

11,270 

13,813 

17,060 

20,629 

26,733 

33,833 

42,787 

53,492 

65,739 

79,127 

92,945 

106,639 

119,707 

131,668 

142,229 

151,197 

158,388 

163,903 

167,414 

168,424 

166,893 

163,724 

159,342 

153,973 

148,000 

141,483 

134,551 

127,413 

120,134 

112,763 

105,215 


Total 

Pension 

to 

Em- 
ployees 


$241 

623 

1,005 

1,336 

1,429 

2,475 

3,147 

3,923 

4,926 

6,093 

7,502 

9,212 

11,270 

13,813 

17,060 

20,629 

26,733 

33,833 

42,787 

53,492 

65,739 

79,127 

92,945 

106,639 

119,707 

131,668 

142,229 

151,197 

158,388 

163,903 

184,360 

207,967 

218,223 

223,609 

225,410 

224,374 

221,270 

216,193 

209,409 

201,240 

192,017 

181,839 

170,975 


Total 

Salary 

Wid- 

Chil- 

Pension 

Total 

Pay- 

ows' 

dren's 

to  Wid- 

All 

ments  for 

Pension 

Pension 

ows  and 
Children 

Pensions 

Active 
Service 

$11 

$3 

$14 

$254 

$786,622 

36 

12 

48 

671 

804,997 

72 

27 

99 

1,104 

823,754 

118 

48 

166 

1,502 

841,821 

180 

78 

258 

1,687 

858,557 

258 

117 

375 

2,850 

872,797 

348 

164 

512 

3,659 

885,571 

454 

222 

676 

4,599 

895.047 

578 

292 

870 

5,796 

901,321 

729 

379 

1,108 

7,201 

904,840 

926 

491 

1,417 

8,919 

903,987 

1,187 

641 

1,828 

11,040 

900,375 

1,567 

855 

2,422 

13,692 

892,447 

2,126 

1,169 

3,295 

17,108 

881,749 

2,947 

1,630 

4,577 

21,637 

867,880 

4,010 

2,234 

6,244 

26,873 

850,990 

5,214 

2,935 

8,149 

34,882 

830,530 

6,530 

3,720 

10,250 

44,083 

804,723 

7,943 

4,574 

12,517 

55,304 

774,289 

9,438 

5,487 

14.925 

68,417 

739,412 

11,013 

6.460 

17,473 

83,212 

700,091 

12,672 

7,497 

20,169 

99,296 

658,097 

14,409 

8,587 

22,996 

115,941 

614,228 

16,211 

9,724 

25,935 

132.574 

570,395 

18,057 

10,902 

28,959 

148,666 

527,314 

19,919 

12,106 

32,025 

163,693 

485,433 

21,830 

13,256 

35,086 

177,315 

445,789 

23,795 

14,513 

38,308 

189,505 

409,212 

25,778 

15,773 

41,551 

199,939 

376,138 

27,784 

16,984 

44,768 

208,671 

244,556 

29,825 

18,118 

47,943 

232,303 

284.263 

31,897 

19,109 

51,006 

258,973 

215,956 

33,979 

20,022 

54,001 

272,224 

173,309 

36,082 

20,057 

56,139 

279,748 

139,346 

38,175 

20,784 

58,959 

284,369 

111,749 

40,249 

21,448 

61,697 

286,071 

88,823 

42,316 

22,051 

64,367 

285,637 

69,753 

44,327 

21,407 

65,734 

281,927 

54,061 

46,255 

21,765 

68,020 

277,429 

41,521 

48,077 

20,734 

68,811 

270,051 

31,798 

49,755 

19,382 

69,137 

261.154 

24,450 

51,269 

19,254 

70,523 

252,362 

19,014 

52,584 

17,455 

70,039 

241,014 

15,028 

207 

PENSION  RECEIVED  BY  AN    EMPLOYEE. 

ployees  it  was  considered  advisable  to  figure  the  amounts  of  salary  and 
annual  amounts  of  salary  and  pension  which  would  be  received  by  1,000 
calculated.  The  following  table  shows  the  amounts  of  pensions  for  each 
ployees  from  their  entrance  into  the  service  until  they  are  all  out  of  the 


be   Made  to   1,000  Employees  Entering  the 
Entrance  Salary  of  $800  Per  Annum. 


Service   of    the    New    York  City 


Year 

of 
Pay- 
ment 

Total 

Total 

Salary 

Service 

Dis- 

Pension 

Wid- 

Chil- 

Pension 

Total 

Pay- 

Pen- 

ability 

to 

ows' 

dren's 

to  Wid- 

All 

ments  for 

sion 

Pension 

Em- 

Pension 

Pension 

ows  and 

Pensions 

Active 

ployees 

Children 

Service 

44 

$62,058 

$97,747 

$159,805 

53,664 

$15,396 

$69,060 

$228,865 

$12,061 

45 

58,063 

90,258 

148,321 

54,471 

13,109 

67,580 

215,901 

9,730 

46 

54,072 

82,870 

136,942 

54,987 

10,674 

65,661 

202,603 

7,740 

47 

50,176 

75,710 

125,886 

55,236 

9,798 

65,034 

190,920 

5,899 

48 

46,321 

68,550 

114,871 

55,026 

7,393 

62,419 

177,290 

4,116 

49 

42,543 

61,742 

104,285 

54,896 

5,247 

60.143 

164,428 

2,503 

50 

38,847 

55,051 

93,898 

54.198 

4,515 

58,713 

152,611 

1,257 

51 

35,104 

48,595 

83,699 

53,216 

2,948 

56,164 

139,863 

477 

52 

31,339 

42,491 

73,830 

51,913 

2,462 

54,375 

128,205 

127 

53 

27,641 

36,857 

64,498 

50,304 

2,028 

52,332 

116,830 

22 

54 

24,262 

31,458 

55,720 

48,397 

1,204 

49,601 

105,321 

55 

21,051 

26,528 

47,579 

46,218 

977- 

47,195 

94,774 

56 

18,107 

21,950 

40,057 

43,797 

795 

44,592 

84,649 

57 

15,342 

17,842 

33,184 

41,153 

647 

41,800 

74,984 

58 

12,934 

14,203 

27,137 

38,339 

364 

38,703 

65,840 

59 

10,793 

11,034 

21,827 

35,394 

299 

35,693 

57,520 

60 

8,831 

8,451 

17,282 

32,285 

247 

32,532 

49,814 

61 

7,136 

6,221 

13,357 

28,573 

205 

28,778 

42,135 

62 

5,709 

4,343 

10,052 

25,610 

168 

25,778 

35,830 

63 

4,460 

2,934 

7,394 

22,676 

134 

22,810 

30,204 

64 

3,390 

1,878 

5,268 

19,835 

104 

19,939 

25,207 

65 

2,498 

1,056 

3,554 

17,125 

79 

17,204 

20,758 

66 

1,784 

587 

2,371 

14,578 

58 

14,636 

17,007 

67 

1,249 

352 

1,601 

12,229 

24 

12,253 

13,854 

68 

892 

117 

1,009 

10,101 

17 

10,118 

11,127 

69 

535 

82 

617 

8,193 

11 

8,204 

8,821 

70 

357 

34 

391 

6,528 

7 

6,535 

6,926 

71 

178 

10 

188 

5,094 

4 

5,098 

5,286 

72 

89 

2 

91 

3,876 

2 

3,878 

3,969 

73 

62 

62 

2,861 

1 

2,862 

2,924 

74 

25 

25 

2,044 

2,044 

2,069 

75 

7 

7 

1,400 

1,400 

1,407 

76 

1 

1 

916 

916 

917 

77 

563 

563 

563 

78 

322 

322 

322 

79 



164 

164 

164 

80 

76 

76 

76 

81 

26 

26 

26 

82 
83 
84 

12 
5 
1 

12 
5 
1 

12 
5 
1 

Total . 

1,393,413 

4,151,353 

5,544,766 

1,787,232 

481,383 

2,268,615 

7,813,381 

23,365,965 

208 

If  we  divide  the  results  in  the  preceding  table  by  1,000,  we  get 
the  cost  for  a  single  employee.  The  following  table  shows  the  annual 
amounts  of  pension  payments  received,  the  average  annual  amount  of 

Table  33 — Showing  the  Annual  Amounts  of  Pension  and  Salary  Payments  to  be 

at  Age  25  on  an  Entrance 


Year 
of 

Payment 

Pension 
Payments 

Salary 
Payments 

Total  Pension 
and  Salary 
Payments 

Employee's 

Contribution 

to  Pension 

Annual 
Net   Cost 
to  the  City 

1 

$.25 

$786.62 

$786.87 

$15.73 

$771.14 

2 

.67 

805.00 

805.67 

16.10 

789.57 

3 

1.10 

823.75 

824.85 

16.48 

808.37 

4 

1.50 

841.82 

843.32 

16.84 

826.48 

5 

1.69 

858.56 

860.25 

17.17 

843.08 

6 

2.85 

872.80 

875.65 

17.46 

858.19 

7 

3.66 

885.57 

889.23 

17.71 

871.52 

8 

4.60 

895.05 

899.65 

17.90 

881.75 

9 

5.80 

901.32 

907.12 

18.03 

889.09 

10 

7.20 

904.84 

912.04 

18.10 

893.94 

11 

8.92 

903.99 

912.91 

18.08 

894.83 

12 

11.04 

900.38 

911.42 

18.01 

893.41 

13 

13.69 

892.45 

906.14 

17.85 

888  29 

14 

17.11 

881.75 

898.86 

17.64 

881.22 

15 

21.64 

•  867.88 

889.52 

17.36 

872.16 

16 

26.87 

850.99 

877.86 

17.02 

860.84 

17 

34.88 

830.53 

865.41 

16.61 

848.80 

18 

44.08 

804.72 

848.80 

16.09 

832.71 

19 

55.30 

774.29 

829.59 

15.49 

814.10 

20 

68.42 

739.41 

807.83 

14.79 

793.04 

21 

83.21 

700.09 

783.30 

14.00 

769.30 

22 

99.30 

658.10 

757.40 

13.16 

744.24 

23 

115.94 

614.23 

730.17 

12.28 

717.89 

24 

132.57 

570.40 

702.97 

11.41 

691.56 

25 

148.67 

527.31 

675.98 

10.55 

665.43 

26 

163.69 

485.43 

649.12 

9.71 

639.41 

27 

177.32 

445.79 

623.11 

8.92 

614.19 

28 

189.51 

409.21 

598.72 

8.18 

590.54 

29 

199.94 

376.14 

576.08 

7.52 

568.56 

30 

208.67 

244.56 

453.23 

4.89 

448.34 

31 

232.30 

284.26 

516.56 

5.69 

510.87 

32 

258.97 

215.96 

474.93 

4.32 

470.61 

33 

272.22 

173.31 

445.53 

3.47 

442.06 

34 

279.75 

139.35 

419.10 

2.79 

416.31 

35 

284.37 

111.75 

396.12 

2.24 

393.88 

36 

286.07 

88.82 

374.89 

1.78 

373.11 

37 

285.64 

69.75 

355.39 

1.40 

353.99 

38 

281.93 

54.06 

335.99 

1.08 

334.91 

39 

277.43 

41.52 

318.95 

.83 

318.12 

40 

270.05 

31.80 

301.85 

.64 

301.21 

41 

261 . 15 

24.45 

285.60 

.49 

285.11 

42 

252.36 

19.01 

271.37 

.38 

270.99 

43 

241.01 

15.03 

256.04 

.30 

255.74 

-rm 

209 

salary  received,  the  average  annual  amount  of  the  employees'  contribution, 
and  the  average  annual  net  cost  to  the  City  for  a  single  employee: 


Made  to  One  Employee  Entering  the  Service  of  the  New  York  Citt  Police  Force 
Salary  of  $S00  Per  Annum. 


Year 

Pension 

Payments 

Salary 
Payments 

Total  Pension 

Employees' 

Annual 

of 
Payment 

and  Salary 
Payments 

Contribution 
to  Pension 

Net  Cost 
to  the  City 

44 

$228.87 

$12.06 

$240.93 

$.24 

$240.69 

45 

215.90 

9.73 

225.63 

.19 

225.44 

46 

202.60 

7.74 

210.34 

.15 

210.19 

47 

190.92 

5.90 

196.82 

.12 

196.70 

48 

177.29 

4.12 

181.41 

.08 

181.33 

49 

164.43 

2.50 

166.93 

.05 

166.88 

50 

152.61 

1.26 

153.87 

.03 

153.84 

51 

139.86 

.48 

140.34 

.01 

140.33 

52 

128.21 

.13 

128.34 

128.34 

53 

116.83 

.02 

116.85 

116.85 

54 

105.32 

105.32 

105.32 

55 

94.77 

94.77 

94.77 

56 

84.65 

84.65 

84.65 

57 

74.98 

74.98 

74.98 

58 

65.84 

65.84 

65.84 

59 

57.52 

57.52 

57.52 

60 

49.81 

49.81 

49.81 

61 

42.14 

42.14 

42.14 

62 

35.83 

35.83 

35.83 

63 

30.20 

30.20 

30.20 

64 

25.21 

25.21 

25.21 

65 

20.76 

20.76 

20.76 

66 

17.01 

17.01 

17.01 

67 

13.85 

13.85 

13.85 

68 

11.13 

11.13 

11.13 

69 

8.82 

8.82 

8.82 

70 

6.93 

6.93 

6.93 

71 

5.29 

5.29 

5.29 

72 

3.97 

3.97 

3.97 

73 

2.92 

2.92 

2.92 

74 

2.07 

2.07 

2.07 

75 

1.41 

1.41 

1.41 

76 

.92 

.92 

.92 

77 

.56 

.56 

.56 

78 

.32 

.32 

.32 

79 

.16 

.16 

.16 

80 

.08 

.08 

.08 

81 

.03 

.03 

.03 

82 

.01 

.01 

.01 

83 

.01 

.01 

.01 

84 

Total 

$7,813.38 

$23,365.99 

$31,179.37 

$467.36 

$30,712.01 

210 

The  following  table  is  a  summary  of  the  pension  and  salary  payments 
to  members  of  the  police  force  as  compared  with  active  service  rendered 
in  return  therefor. 


Table  34 — Showing  Average  Pension,  Salary  and  Active  Service 
of  an  Employee  Entering  Service  at  Age  25. 


Total  net  cost  to  city 

Total  salary  payments 

Total  pension  to  employee 

Total  pension  to  widow  and  children 

Total  all  pensions 

Total  contributions  by  employee , 

Total  net  cost  of  pensions  to  city 

Average  length  of  service  20  years,  6  months 

Net  cost  to  City  per  year  of  active  service 

Salary  payments  per  year  of  active  service 

Employee's  pension  per  year  of  active  service 

Widows  and  children's  pension  per  year  of  active  service 

All  pensions  per  year  of  active  service 

Contributions  by  employees  per  year  of  active  service . . . 
Net  cost  to  City  of  pensions  per  year  of  active  service .  .  . 


$30,712.03 


$23,365.97 
5,544.77 
2,268.61 
7,813.38 
467.32 
7,346.06 


$1,498.47 


$1,140.05 
270.53 
110.69 
381.22 
22.80 
358.42 


THE  VALUATION  OF  TOTAL  ASSETS  AND  LIABILITIES. 


The  ordinary  actuarial  valuation  of  a  pension  fund  consists  in  a  com- 
parison of  the  present  value  of  all  liabilities  with  the  present  value  of  all 
assets.  "While  such  a  valuation  alone  would  have  been  hardly  adequate 
to  show  the  liabilities  of  the  fund  and  its  actual  working  so  clearly  as 
the  distribution  by  years,  it  is  very  helpful  to  illustrate  the  effect  of 
interest  on  the  accumulations  of  a  pension  system.  The  following  table 
shows  the  ordinary  balance  sheet  of  a  valuation,  to  which  have  been  added 
two  additional  columns.  The  first  column  of  figures  shows  the  actual 
amount  of  the  pension  payments  which  will  be  made  by  the  City  on  ac- 
count of  the  present  active  and  pension  rolls.  The  second  column  shows 
the  present  value  of  these  liabilities,  or  the  amount  of  money  which,  if 
placed  at  4  per  cent,  interest,  would  be  sufficient  to  meet  the  payments  as 
they  come  due;  the  third  column  shows  the  difference  between  the  first 
and  second,  or  the  amount  of  interest  which  would  be  allowed  on  the 
amounts  shown  in  the  second  column  before  they  were  entirely  paid  out 
in  pensions.  The  same  relationship  exists  between  the  columns  on  the 
asset  side  of  the  valuation  sheet. 

The  amount  of  the  deficiency,  which  is  shown  on  the  asset  side  of  the 
sheet,  shows  the  amount  of  money  which  the  City  will  have  to  contribute 
toward  pensions  on  account  of  the  present  active  and  pension  rolls  alone, 
or  one  hundred  and  forty-four  million  dollars  ($144,000,000).     The  pres- 


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212 

ent  value  of  this  amount,  or  sixty-five  million  dollars  ($65,000,000),  is 
the  money  which  the  City  might  place  at  interest  immediately  to  com- 
pletely discharge  the  liability.  If  this  amount  could  be  set  aside,  it  would 
reduce  the  cost  to  the  present  members  to  less  than  half,  or  by  about 
seventy-nine  million  dollars  ($79,000,000).  These  figures  show  forcibly 
the  advantage  of  accumulating  the  proper  reserve  for  a  pension  system 
instead  of  waiting  until  payments  are  due  before  providing  for  them. 


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